I am to work as a contract employee at a company. They will pay to my own company and I have to take care of my taxes.
My company is an LLC, the only person in it is me, and I am not sure if in this case a "Contract Employee" the same as an "Independent Contractor".
We will sign an agreement of my dutties to his company and will be paying me by job done.
What would be the difference?
2007-08-06 12:24:25 · 7 answers · asked by Alekz 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
No difference whatsoever. Contract Employee gets a 1099, and is responsible for his/her own taxes, just like independent contractor.
2007-08-06 15:35:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
An independent contractor is a person who is self employed. Generally, they do a job for someone and give that someone a bill. The bill gets paid and the independent contractor has to pay their own taxes. An independent contractor will have several other customers they do work for. If an independent contractor works for one company all the time, they are really an employee and would be entitled to the benefits of the other employees. Also, taxes would be deducted from their pay. I have no experience with contracted employees so I can't give you a good explanation of what one is. Maybe someone here can define it for you but they are not the same.
2016-05-20 00:57:46 · answer #2 · answered by ? 3 · 0⤊ 0⤋
As a "contract employee" you are exclusively obligated to that single employer. Like as a "temp", so if they want you 9 to 5...you gotta be there and you do the job THEIR way.
As an independant contractor, you have more say in what your hours are and your techniques in doing the job as long as the job is done in the agreed time and at or under the agreed price. As an independant contractor YOU are the boss...as a contract employee THEY are the boss.
2007-08-06 12:41:43 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It depends on how the person is paid...if they are a contract employee then have taxes deducted and if they are a independent contractor they are responsible for their own taxes. An independent contractor is hired through a company name...a contracted employee is an employee that works under a contract that is dependent on the time length of the job.
A Business Consultant - Independent Contractor.
2007-08-06 12:39:58 · answer #4 · answered by kadnil 3 · 0⤊ 0⤋
No difference. Just different words for the same thing.
2007-08-06 12:38:53 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
The terms are fully interchangeable. They mean the same thing.
2007-08-06 12:32:27 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋
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2007-08-07 20:15:29 · answer #7 · answered by Anonymous · 0⤊ 0⤋