Additionally, you are not responsible for paying a contractor’s benefits or employment taxes, carrying their workers’ compensation policy, or withholding their income taxes.Īlthough the main differentiator of worker status comes down to control, the dividing line between an employee and an independent contractor is not always that simple. How is the person being compensated? Independent contractors typically are paid by their output, not their time.Is the person in control of their schedule for completing work? Employers can dictate their employees’ schedules and work output, whereas contractors have more control over when and how much they work.Is the person using their own tools? You provide employees with the tools required to complete a job, whereas independent contractors are typically responsible for their own tools. ![]()
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