Contractor vs. Employee

Understanding Worker Classification

Correctly distinguishing between an employee and an independent contractor is crucial - for legal compliance, tax reasons, and operational clarity. Misclassification can result in penalties, back taxes, and strained relationships. This guide simplifies the decision using six essential factors.

A woman wearing a gray blazer, black top, and ripped blue jeans leaning against a brick wall while holding a closed black laptop, with her right hand touching her ear, on a city sidewalk.