Employers and Employees Should Understand the Difference between Independent Contractors and Employees

There are two general categories of workers, independent contractors and employees, and how the state and federal government classifies your workers will significantly affect your cost of doing business.

A business pays independent contractors for the work they do and does not provide benefits, such as paid time off, health insurance, workers compensation insurance, or withhold taxes.  In addition, independent contractors are not protected by numerous laws governing employment, such as anti-discrimination and payment for overtime.

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