Employee vs. Independent Contractor

Nate Piche Employee or independent avower? When choosing whether to classify a thespian as an free propel avower or an employee the employer has many assess related and non-tax motivations to deal the former. The biggest motivations are the many taxes that the employer volition non be responsible for withholding tax if they choose to classify a thespian as an mugwump asserter. One of the largest responsibilities of an employer is the role it plays as tax collector for the government. If an employer is commensurate to classify its worker as an self-employed person contractile organ preferably than an employee they would non have to get down about withholding federal in contend tax, FICA taxes, FUTA taxes, and state income taxes. Instead this lading would fall upon the indie contractor when tax season comes around. at that place are non-tax benefits for the lineage in choosing to classify a worker as an independent contractor as well. Employers do non have to bear on about assumeing into workers salary plans for independent contractors, they do non have to pay health or welfare benefits, pay into pension plans, or deduct wrinkle expenses. With all of those pros to classifying a worker as an independent contractor you have to adore why businesses choose not to.

along with those many benefits there are also a a couple of(prenominal) disadvantages. Independent contractors, by definition, do not work score hours which essence they are free to come and go as they beguile which could lead to schedule disruption. in that respect are risks of disloyalty to the fraternity that are increased by hiring as an independent contractor because their life is not connected with the business entity. A trine major(ip) disadvantage is that the companies may not own the copyrights on materials created by independent contractors (Durban, 2010). Those negative simply certainly do not seem like they would do enough to rede an entity from classifying all of its workers as independent contractors. The biggest reason to not...If you sine qua non to use up a full essay, order it on our website: Orderessay

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