What are the differences between independent contractors and employees?

The differences between independent contractors and employees in Washington are important to understand when it comes to wage and hour law. An independent contractor is a person who provides services to another person or business and is not under the control or direction of the hiring entity. This independence means that the contractor sets their own schedules and looks after taxes, benefits, and insurance. On the other hand, an employee is hired to perform services for an employer and is generally under the control and direction of the employer. Employees have certain responsibilities and protections that contractors do not. This includes minimum wage, overtime pay, and other labor standards. Employees are typically paid an hourly or salaried wage and have certain benefits like health insurance and retirement plans. If a worker is an employee, the employer is required to pay taxes, withholdings, and report wages on a regular basis. The most important difference between independent contractors and employees is how they are taxed. Employees are typically subject to federal and state income taxes, while independent contractors are not. Additionally, independent contractors must pay estimated taxes quarterly and file a 1099-MISC form instead of a W-2. Ultimately, understanding if a worker is an employee or independent contractor is important to make sure everyone is in compliance with wage and hour law in Washington. Knowing the differences can help employers and employees make sure they are both aware of their rights and responsibilities when it comes to employment.

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What are the differences between independent contractors and employees?

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