Is it better to be an employee or an independent contractor? Why?

Answer 1

One big benefit for being an employee is that your employer pays your taxes for you out of your wages, and some employees even offer benefits like insurance. An independent contractor, you are responsible for paying your own taxes and social security, Try to get affordable health insurance! Some states you have to pay a self employment tax on top of your other taxes

Answer 2

As an employee the employer is responcible to pay workmans compansation, which means if you get injured on the Job there is an insurance policy there to pay your claim.

As an independant contractor, your responcible for your own workmans compansation, insurance and paying your taxes!

As an employer I give my employees the option to go on Payroll an an employee or as an independant contractor.

The #1 reason why I see employees choose to be their own independant contractor is because they do not want taxes taken out of their check every week. What they do is get their check and then go and cash it at the liquor store, and then don't file their taxes at the end of the year.

As an employer we have to give these employees a 1099 at the end of the year, and if they don't pay the taxes on the money they earned thats between them and the goverment.

My advice is to go as an employee, let them take the taxes out of your check and then you get a nice refund check at the end of the year instead of having to owe money.

Answer 3

It depends on your personality. Being an independant contractor gives you more control over your own business but you have to set up your own jobs and clients. You are responsible for all aspects of your business. As an employee you don't have to worry so much about some of the "behind the scene" stuff. If you are ambitious and self motivated go for being an independant contractor.

Answer 4

Tax-wise, you can take a multitude of deductions. It's nice being your own boss if you can take the responsibility.