Becca: Final Exam essay question 3

Employee

employer hires employees to perform tasks or services, and have a lot of control over what their employees do.

how do you determine weather someone is an employee or independent contractor in the eyes of the law. why does it matter and what are the major differences

essay question number 3

Independent Contractor

Employer hires an outside business, not related to the business that hired them, to do a specific task. They have a number of clients.

what is the difference between an employee and an independent contractor

an employer can be held liable for something that their employee engaged in during working hours. An independent contractor on the other hand, is their own business, so any mishaps falls not on the employer but the contractors business.

why does this matter?

Hiring an independent contractor is a great way to get a job done for your business that your business is not designed to do. ex. I own a hardware store and hired a HVAC company to fix the AC unit in my building. I did this because I have no experience in HVAC and it would be more beneficial to my company to hire someone that is specialized.