What are the ten (10) significant differences between an employee and an independent contractor?

Hiring employees and contractors can be distinguished in these ten aspects:

1. Contract: Employment contract vs service agreement

2. Working relationship: Work solely full-time vs serving multiple clients.

3. Payment: Regular monthly salary vs agreed sum set in the agreement

4. Resources: Company to provide vs using own resources.

5. Expenses: Claimable vs bear all expenses

6. Work autonomy: Under control and direction vs work according to own will

7. Business relationship: Long-term relationship vs short-term stated in the agreement

8. Job delegation: Must work personally vs able to delegate tasks freely

9. Income Tax: Borne by the employer vs filling own company tax 10. Employee benefits: Entitled to claim vs no right to receive

 

Learn the key differences between hiring a contractor and an employee before making your hiring decision in your business expansion plan.