When you dedicate your time and professional talents to a Florida business, it is imperative that the person who pays you for the work you perform classifies you appropriately as either an employee or an independent contractor. Whether you are an employee or an independent contractor has far-reaching implications, and it affects everything from how you receive payment to how much control the employer has over you.
According to the U.S. Department of Health and Human Services, there are some very clear and distinct differences in terms of what employers have to do for actual employees versus what they have to do for independent contractors.
When you are an employee
As an actual employee, your employer has to take income tax, Medicare and Social Security out of each paycheck. As an employee, you also have certain protections available to you in terms of U.S. labor laws. If your employer tells you when and how to perform work and otherwise controls the main aspects of how you conduct business, you are likely an employee, rather than an independent contractor.
When you are a contractor
When you are an independent contractor, your employer does not take taxes out of your paychecks. Instead, it is up to you to make sure you pay taxes on your income. You also lack the employment protections that actual employees have when you make your living as an independent contractor.
Some employers intentionally misclassify workers because it saves them money to do so. However, this is an unlawful practice that may hurt you in the long run.