What are the differences between an employee and an independent contractor?
The primary difference between an employee and an independent contractor is the amount of control over each worker’s job duties. In Colorado, an employee is someone who works for an organization and is subject to its control and direction regarding the individual’s work. An employer has the right to dictate when, where, how, and for how long the employee works. The employer is also responsible for providing the employee with all the necessary tools and materials to complete the job. By contrast, an independent contractor in Colorado is someone who works for an organization, but has more freedom and control over their job duties. Independent contractors can set their own hours, determine the prices they charge, and have the ability to use their own tools and equipment. Unlike employees, independent contractors are considered an independent business, and as such, are responsible for their own taxes and health care costs, as well as being liable for any mistakes they make. Generally speaking, any individual who provides services to an organization on a regular basis and is subject to the employer’s control may be considered an employee. Conversely, anyone who is in business for themselves and is able to control when and how they work may be classified as an independent contractor. Colorado labor laws are clear on the rights and obligations of both employees and independent contractors. It is important for any employer to understand the differences between the two to ensure that they are in compliance with the state’s labor laws.
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