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

The difference between an independent contractor and an employee in North Carolina can be summarized in three categories: control, payment, and taxes. Control: An independent contractor must control their own work. This means they make their own schedule and are responsible for determining when, where, and how to complete their tasks. An employee, on the other hand, is typically under the direction and control of the employer, with specific instructions provided for completing tasks. Payment: Independent contractors may be paid on a project basis and can negotiate the rate of payment, while employees typically receive a fixed salary or an hourly wage. Taxes: Independent contractors must pay self-employment tax and file form 1099-MISC if the contract is more than $600. Employees’ tax withholdings and contributions, such as Social Security and Medicare taxes, are paid for by the employer. In North Carolina, the Department of Labor enforces a number of laws to ensure fair and safe working conditions for employees. These laws may not apply to independent contractors in the same way, so it is important to understand the difference between the two before making any decisions.

Related FAQs

What are the laws concerning wage and hour disputes?
What is the Workforce Investment Act (WIA)?
What is the Minimum Wage Act?
What is the National Labor Relations Act (NLRA)?
What are the laws concerning overtime pay?
What is the Family and Medical Leave Act (FMLA)?
What is the minimum wage?
What are the laws governing safe work environments?
What is the Employee Polygraph Protection Act?
What is the National Labor Relations Act (NLRA)?

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

Related FAQs

Related Blog Posts