How you classify your workers matters — fact. Companies that are mis-classifying contractors have been facing steep fines. If you’re wondering what the differences are between an independent contractor and an employee, you’re in the right place. Let’s look at a quick definition of both types of worker, and how that makes a difference in practice. Employees definition The IRS says that an employee is anyone who works for you where you define “what will be done, and how it will be done.” For example, you could tell an employee where they need to work from, or how much you’re
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