Independent Contractor vs Employee

An independent contractor is a self-employed individual who provides services to clients under a contract, often for a specific project or time, and usually controls how and when the work is done. In contrast, an employee works for an employer, follows their direction, and typically receives a steady paycheck, benefits, and tax withholdings. The key differences lie in control, financial responsibilities, and benefits: contractors manage their own business expenses and taxes, while employees have taxes withheld and may receive benefits like health insurance and retirement plans.