{"id":357748,"date":"2016-04-04T10:45:26","date_gmt":"2016-04-04T15:45:26","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/employment\/hiring-process\/being-an-independent-contractor-vs-employee.html"},"modified":"2026-04-20T16:48:01","modified_gmt":"2026-04-20T21:48:01","slug":"being-an-independent-contractor-vs-employee","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/employment\/hiring-process\/being-an-independent-contractor-vs-employee.html","title":{"rendered":"Independent Contractors vs. Employees: Key Differences Explained"},"content":{"rendered":"\n
\n

Independent Contractors vs. Employees: Key Differences Explained<\/h1>\n\n
\n
\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

\n
\n
\n

Key Takeaways<\/h2>\n

An independent contractor<\/span> is a self-employed worker who provides services to clients under contract terms they control, while an employee is a worker whose job duties, schedule, and methods are controlled by an employer. The distinction between these two worker classifications<\/span> determines tax obligations<\/span>, benefits eligibility, legal protections, and liability. Understanding your classification is crucial because misclassification<\/span> can affect your rights, compensation, and access to workplace protections.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Ever wondered what the differences are between employees and\u00a0independent contractors<\/span>? In many respects, there seems to be no difference at all. Freelancers and employees often work side by side at the same company, even doing the same or similar work. However, there are important legal differences between\u00a0an independent\u00a0contractor<\/span><\/a>\u00a0and an employee.<\/p>\n

Your job status affects many issues. These include\u00a0benefits<\/a>,\u00a0taxes<\/a>, and liability. If you\u2019re accepting a job offer to be an independent contractor<\/span>, you should know some of the key differences.<\/p>\n

What Is the Difference Between an Employee and an Independent Contractor<\/span>?<\/h2>\n

The difference between an employee and an independent contractor<\/span> centers on the level of control in the working relationship<\/span>. An employee is a worker whose job duties, schedule, work methods, and workplace are controlled by an employer, while an independent contractor<\/span> is a self-employed worker who maintains control over how, when, and where they complete work for their clients. This distinction affects everything from tax obligations<\/span> and benefits eligibility to legal protections and liability.<\/p>\n

Understanding your worker classification<\/span> is crucial because it determines your legal rights, tax responsibilities, and access to benefits. The classification also affects your employer’s or client’s legal obligations to you. While the difference may seem straightforward, many workers find themselves in gray areas where classification isn’t immediately clear.<\/p>\n

Definition of Employee<\/h3>\n

An employee is a worker who performs services for an employer under the employer’s direction and control. The employer controls not only what work will be done, but also how, when, and where the employee will perform it. This relationship gives the employee certain legal protections and benefits while also limiting their independence.<\/p>\n

Employees work under an employment relationship<\/span> that typically includes:<\/p>\n