Are you having trouble understanding the difference between an independent contractor and an employee? The lines between the two categories can be blurry.
Read the article to learn about the difference between an independent contractor and an employee.
What is Contract Labor?
Contract labor is someone who works on a project, project by project (like a freelancer), or on a set fee (like a freelancer). Contract labor can be a business owner, a department manager, or someone hired by a business owner to do a job.
With the price of labor rising and more businesses seeking new ways to cut costs, it’s becoming more and more common for companies to seek out contractors to complete pre-planned tasks without officially hiring them. Companies use contract labor for a variety of reasons, from the cost-savings that come with employing someone else to the flexibility of letting a contractor work only when he or she is needed.
If you hire independent contract labor, you have to deduct the wages from your income. Additionally, you will need to give them the IRS Form 1096 and 1099-MISC to list how much you paid them.
What is an Employee?
An employee is a term that is used to describe someone that is part of a specific group of people. In some cases, it is a title for the person that performs a particular function for an organization or company. In others, it is a label for the position that is filled by a person. In some cases, it is a term being used to describe the person who has been hired to perform a particular function. The term is used to describe the person who works for an organization, an individual that has agreed to work for a specific organization and work in return for payment, or a person who has worked for an organization on a regular basis.
Fast and Easy Hiring with Talentum
Understanding the nuances of employing independent contractors is not simple, especially when hiring overseas.
This is where Talentum steps in. Talentum is a global talent acquisition platform, providing a single point of access to the most qualified candidates, globally. It helps you hire quickly, easily, and affordably.
The proficient team of Talentum makes sure that all the documents of the contract labor are in place to reduce the legal and operational overhead. To know more about compliance matters, request a demo today.