Employees and independent contractors all play important parts for small businesses across the country. While they can both work for the same company, there are key differences between the two.
Why does proper employment status matter? There are important legal differences between employees and independent contractors that affect payment, protections, and other key HR matters. In addition, improper employee classification can lead to serious penalties from the IRS. Here’s a breakdown on what differentiates independent contractors and employees and how it can impact a small business.