What is the difference between an independent contractor and an employee?
The main difference between an independent contractor and an employee in Nevada is how they are viewed by labor and employment law. An employee is a person who provides labor or services and who is under the control and direction of an employer. An employer is obligated to withhold taxes on employee wages, provide workers compensation and unemployment insurance, and pay overtime in accordance with the state and federal labor laws. An independent contractor, however, is not viewed as an employee by labor and employment law. An independent contractor is someone who enters into a contractual agreement with a business to provide services as an independent business. Independent contractors are not paid a salary, but instead are paid for their services rendered. The business is not obligated to withhold taxes, provide workers compensation or pay overtime to independent contractors. Independent contractors also generally have more flexibility in the way they complete their work as compared to employees. An independent contractor generally sets their own hours, determines the number of assignments they will take, and how the assignments will be completed. Employees, on the other hand, are expected to adhere to the policies and procedures of the employer. In conclusion, an independent contractor and an employee are viewed differently under Nevada labor and employment law. Employees are subjected to a number of additional requirements such as withholding taxes, providing workers compensation, and paying overtime. Independent contractors, however, have more flexibility and are not subject to the same requirements as employees.
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