Differences Between Independent Practitioner And An Employee

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Introduction
Being as an employee in a company, there might have no differences between being an independent contractor or an employee in their points of view since they might be preforming the same job and working together at the same company. On the other hand, being as an employer, the employer must identify who and what are the differences between the employees and the independent contractors. Failure to do so might result in significant liability on the employer. The major difference between independent contractor and employee goes beyond the job, the title, and even the performance. The differences are majorly involved with legal issue such as determining one’s liability to pay and withhold Federal income tax, social security tax and …show more content…

Sometimes independent contractor is defined as consultant, freelancer, the self-employed, and business owner. Example for hiring an independent contractor is that sometimes businesses hire outside accountants to do their financial reports to submit to the IRS.
The independent contractor does not receive employment benefits from the employer such as insurance, paid time off, and unemployment compensation. The company that hires them is not required to provide an office for them. According to FindLaw, “Independent contractor is not subject to tax or FICA withholding, but pays his or her own self-employment tax.” They are required to submit their own income taxes to the IRS.
Employee
Employee is someone that provide the service for an employer under a job title and a job description that is formed by the employer to what the job will be like and how it should be performed. Employee would receive training for how the work should be done. The employer often has the legal rights to terminate an employee and the employer must provide a safe and healthy environment and equipment for the employee to work with. Employee are almost likely covered by federal laws such as ADA, FLMA, OSHA, and anti-discrimination

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