What is the difference between an independent contractor and an employee?

In Minnesota, the difference between an independent contractor and an employee is based on the degree of control one has over the other. Independent contractors assume responsibility for their own taxes and are not subject to the same labor laws and regulations that govern employers and employees. For example, independent contractors are not required to be paid overtime or to receive benefits such as health insurance or paid time off. Employees, on the other hand, are subject to labor laws and regulations, and their employers are responsible for withholding taxes, paying minimum wage, and providing employee benefits, including vacation time, health insurance, and workers’ compensation. Employees are also entitled to receive overtime pay if they work more than 40 hours in a week and must adhere to the employer’s rules and regulations. The Minnesota Department of Labor and Industry uses a variety of factors to determine whether a worker is an employee or independent contractor. These factors include the type of work the individual is performing, the degree of control the employer has over the individual’s work, and the individual’s ability to set their own hours and rates of pay.

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What is the difference between an independent contractor and an employee?

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