Employment Classification

Employment classification refers to how workers are legally identified based on their relationship with an employer. The main types are "employee" and "independent contractor." Employees typically work directly for an employer, who controls their work hours, methods, and tasks, and often receive benefits like taxes taken out, insurance, and paid leave. Independent contractors, on the other hand, operate independently, controlling how they complete their work, and usually handle their own taxes and benefits. Correct classification affects payroll taxes, legal rights, and eligibility for benefits, making it essential for both workers and employers to understand and adhere to the classifications.