Employee vs. Independent Contractor
If you were thinking of getting additional office help and wanted to hire someone on a part-time of full-time basis you need to understand the difference between employees and independent contractors. There is a major difference between employees and independent contractors when it comes to how much tax you as an employer has to pay and withhold from their paychecks. Additionally, it will affect how much additional cost your business must bear, what documents and information they must provide to you, and what tax documents you must give to them.
Behavioral Control-shows whether the employer directs or controls how the work is done through instructions, training, supervision or other means.
Financial Control-shows whether the employer directs or controls the financial and business aspects of the worker’s job.
The Type of Relationship-factor relates to how the workers and the business owner perceive their relationship.
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