What is the difference between Employee and Independent Contractor?

An employee is someone who has been hired by the company to work for the company on a regular basis. The employee will be a part of the company’s payroll for as long as the employee would like to work for the company or will be removed from the company for different reasons.

An independent contractor is considered to be self-employed, who may provide the needed services to the company for a certain period of time. The independent contractor will be paid when the project is done. The contractor may also be hired again if needed, but the contractor can work for several companies at a time.

An employee is an individual who provides a service to the employer in exchange for respectable consideration, i.e., salary, whereas an independent contractor is a person who offers services to the clients for a fixed fee. Employees receive a fixed salary, whereas an independent contractor advances from each project. An employee works for one employer, while an independent contractor works with multiple clients. For the employee, the input is provided by the employer. With independent contracting, he or she utilizes their input.

An employee works under the supervision of the employer, and an independent contractor works autonomously. Also, independent contractors only have temporary relationships with clients, while employees establish continuing relationships with their employers.