FREQUENTLY ASKED QUESTIONS
Short Answer: Employees work for your business. Independent contractors operate their own businesses and provide services to you.
Why It Matters: Employees are generally subject to your direction and control regarding how, when, and where they perform their work. Independent contractors typically control how they perform their services, often work for multiple clients, and generally provide their own tools and equipment. The distinction affects taxes, benefits, wage laws, insurance, and other legal obligations.
Common Mistakes: Looking only at job titles; requiring contractors to function like employees.
Michelle's Bottom Line: Worker classification should be evaluated carefully before the relationship begins.
