What is the difference between an employee and a contractor?

The difference between an employee and a contractor in Oklahoma commercial law is an important distinction. An employee is an individual hired to work for an employer under an employment contract, while a contractor is an individual or company hired to perform a particular job or service, but not as an employee. An employee is typically an individual who works for an employer on a full-time, permanent basis. They usually receive a salary or wages and are entitled to certain benefits based on the employment contract. An employee is also eligible for government mandated benefits such as Social Security, Medicare, and unemployment benefits. Moreover, an employee is typically subject to federal income tax withholding and other withholding obligations. On the other hand, a contractor is someone who is hired by an organization to carry out a particular job or service. This individual or company is not considered an employee, and therefore they are not entitled to the same benefits and protections as an employee. A contractor typically charges their own rates and sets their own terms and conditions of service. Moreover, a contractor typically is responsible for filing and paying their own taxes, such as self-employment tax and income tax, and is not subject to federal income tax withholding. In summary, an employee is someone that works for an employer on a full-time, permanent basis, while a contractor is hired by an organization to perform a particular job or service. Employees are entitled to certain benefits, while contractors typically set their own terms and conditions of service and are responsible for filing and paying their own taxes.

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What is the difference between an employee and a contractor?

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