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Contractors vs Employees

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As a business owner it is important to know whether the people working for your are independent contractors or employees. Independent contractors typically own their own business and contract their services out to other businesses. Independent contractors are able to control their work and typically provide their own materials and tools. Employees on the other hand are those that perform services for a business but whose actions are controlled by the business. If a business controls the details and actions of a worker then it is likely that person is an employee. There are many factors to weigh when determining whether a worker is an employee or independent contractor. Determining a worker’s role may have an impact on how taxes for the business are calculated.

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