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What is the difference between an employee and an independent contractor?
Wiki User
∙ 13y ago
A small business person may be an independent contractor, meaning only that he or she sells services for a fee, as opposed to being an employee (which is distinctly not "independent"). An independent contractor refers to anyone selling you services (often a corporation or LLC, but also any small business), as long as it is not a joint venture or employment relationship.
Wiki User
∙ 16y ago
Wiki User
∙ 13y agoThat is based on weighing several factors - sometimes the difference is clear sometimes a close call.
What DOES NOT matter? The intention of the worker and the boss and what they call the worker. Saying you are a contractor does not make you one.
Factors: Does the boss direct the manner and speed of accomplishing the work? The worker is probably an employee.
Does the worker provide his/her own tools and supplies, and support devices like phones, computers, and fax. probably a contractor.
Does the boss supervise other workers doing exactly the work the "contractor" does? The contractor is just another employee.
Is the worker paid for COMPLETING a task, not just for working on it? Probably a contractor. Paid for working even if completion not reached - probably an employee.
Is the workers entire pay at risk - no completion, no pay? That's a contractor. Is the worker's pay assured despite quality of work - that's an employee until fired.
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What is the difference between independant contractor and employee?
An independent contractor is someone who works for themselves not a company. They can work for someone else but not be employed by them. An employee is employed by a company.
What is the difference between a vendor and an independent contractor?
An independent contractor is a hired individual who is not an employee and works at a set price. A vendor is a person or group that sells products or services independently.
Why is it important to make a distinction between an employee and an independent contractor?
An employer can be vicariously liable for the torts committed by an employee while they are in the scope of their employment in certain situations. An employer will not normally be held vicariously liable for the torts of an independent contractor because of a lack of supervisory control.
What is the difference between an Independent contractor and an employee?
That is based on weighing several factors - sometimes the difference is clear sometimes a close call. What DOES NOT matter? The intention of the worker and the boss and what they call the worker. Saying you are a contractor does not make you one. Factors: Does the boss direct the manner and speed of accomplishing the work? The worker is probably an employee. Does the worker provide his/her own tools and supplies, and support devices like phones, computers, and fax. probably a contractor. Does the boss supervise other workers doing exactly the work the "contractor" does? The contractor is just another employee. Is the worker paid for COMPLETING a task, not just for working on it? Probably a contractor. Paid for working even if completion not reached - probably an employee. Is the workers entire pay at risk - no completion, no pay? That's a contractor. Is the worker's pay assured despite quality of work - that's an employee until fired.
How much does a certified massage therapist make an hour in a chiropractic office?
It depends on whether you are working for them as an independent contractor or an employee. If you are an independent contractor you usually work by a percentage rate. That can range between 40-60%/ If you are and employee you may work at an hourly rate. You could expect to get anything from $12-$20 per hour.
How does the courts differentiate between an employee and and independent contractor?
Courts don't make the decision, law does. There are federal DLSE/Dept of Labor Standards and Enforcement, IRS rules, and state mandates providing the definition of independent contractor vs employee. Generally, if you are an employee, you would see tax deductions on your check stubs, and a W-2 at the end of the year.l If you are a valid/legal independent contractor, you would receive a 1099. There are very specific rules for both. The answer above is wrong in every way. Courts often need to rule on whether worker X was an employee or not. How the employer pays you is irrelevant to decisions about whether a worker is an employee. IRS and USDOL rules are the factors that courts follow.
What is economic reality test?
The economic Reality Test is a test used by courts to further determine between an employee and an independent contractor. They use this mainly to determine if payroll taxes should have been paid on a person working for a business. If the contractor end up being classified as an employee, the business owes payroll taxes on the money paid to that person. If the person is determined to be an independent contractor, then the person owes income taxes on the money paid to them.
What is the difference between a principal and contractor?
principal runs a school. a contractor builds buildings.
Is a person a subcontractor if the general contractor makes the price?
Anyone who does work for a general contractor and is not a direct employee of that contractor is a sub-contractor. Regardless of who sets the price. The subcontractors work within the contract set between the general contractor and homeowner. Hence sub-contractor.
What is the difference between an entrepreneur and an employee?
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a bidder is a contractor or supplier,but, .......
What is the difference between residential contractor and building contractor?
A residential contractor specializes in building homes which people will live in. A building contractor oversees the building of commercial property.
