Employee or independent contractor: How to find out?
What are the differences between employee and independent contractor?
The Independent contractors hold a higher degree of control over the tasks they are hired to perform. They are contracted for special tasks and the job mainly remains under their own control. They themselves get to decide how they do the job. The employer may decide the venue but it is the output finally that matters. On the other hand in case of the employees, the degree of control is lower as compared to the Independent contractors. The employees receive instructions from their employers they are required to follow. The employer decides what type of the employee will do and also how he does it.
Duration of employment:
The duration of employment in case of the contractors is generally smaller compared to the employees. Contractors are hired for shorter periods like weeks or months whereas the employees once recruited can work with a specific employer for as long as they or the employer or both like. Contractors’ job tenure gets over with the accomplishment of the tasks they are hired to perform.
While employees are paid fixed salaries at the end of every month, the contractors are paid once at the completion of the tasks. They are not paid regularly like the salaried employees.
Contractors generally bring and use their own tools to perform their tasks. It is because they are generally hired to accomplish specialized tasks whereas the employees do all the regular stuff going on inside the office. In case of the employees, it is the employer who provides the required for performing the daily tasks.
Level of skills:
Contractors are the people with high level of skills, specialized to accomplish the tasks ordinary employees cannot perform. The employees are generally required to specialize in the ordinary tasks they carry out regularly. However, even some employees may have very high level of skills depending upon the difficulty level of their job.