What are the differences between independent contractors and employees?

There are important differences between independent contractors and employees in North Carolina. An independent contractor is a self-employed individual who provides services to another individual or business. These individuals are responsible for their own taxes, provide their own supplies and equipment, and schedule their own appointments. They are often not entitled to the same rights and benefits as employees, such as minimum wage, overtime, social security, workers’ compensation, and unemployment insurance. Employees, on the other hand, are hired by an employer to work for them and are subject to the employer’s control. They are entitled to wages that meet state and federal minimum wage standards, overtime pay, and workers’ compensation benefits. Also, employers must provide rest and meal periods, compensation for travel expenses, and Social Security contributions. They must also comply with state and federal wage and hour laws. Some employers classify workers as independent contractors in order to avoid paying taxes, benefits, and complying with certain labor laws. It is important to note that in North Carolina, workers are presumed to be employees unless certain criteria are met, such as having a separate place of business and providing independent services for other businesses. If employers misclassify employees as independent contractors, they can face serious legal consequences.

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What are the differences between independent contractors and employees?

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