Considered self- employed. If the detailed points above didn’t clear this up for you, here is an easy-to-read chart describing the differences between independent contractors and employees. Independent Contractor vs. Employee For federal employment tax purposes, the usual common law rules are applicable to determine if a worker is an independent contractor or an employee.
Under the common law, you must examine the relationship between the worker and the business.
Am I an independent contractor or an employee ? There is no “black and white” definition of who is an independent contractor. Instea there are a number of factors (set forth in the chart below) that courts and agencies use to decide if you are an independent contractor or employee. Note: Want to know how hiring contractors or employees affects your.
For the employee , the company withholds income tax, Social Security, and Medicare from wages paid. For the independent contractor , the company does not withhold taxes. See full list on acf.
What makes you an employee vs.