Is a "Contract Employee" the same as an "Independent Contractor"?

Question

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?

Answer 1

Yes they are the same.

Answer 2

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.

Answer 3

The only difference is in their tax structure. They save alot of $ paying you this way in the form of taxes, that you as an independent employee will end up picking up at the end of the year as self employment tax. I'm pretty sure they don't carry any employee insurance at all either.
I worked for a couple outfits like that and found it to be a glorified job with everyone trying to screw me out of the little bit I made compared to the huge profit they made, and ended up losing money in the end.
After that I decided not working at all was better than working for those clowns and losing $, so if i was ever slow I'd sit at home or work on my own stuff before I worked like that again.
But it works for some people i guess.
~Dave
Oh yeah, and the last time I looked I couldnt see a very legal way of doing this.

Answer 4

Although most people use these terms interchangeably, they shouldn't be used that way.

I have worked for temp agencies. they and their client companies refer to the temps as contract employees. The client signs a contract to have a temp worker come in to work, hence a "contract employee"

The worker is an "employee" of the temp agency not a self employed person.

Answer 5

In this case, it sounds like you are an independent contractor. In other words they just ask you to get the job done, they don't tell you how to do it, pay taxes or benefits.... the only other question is... Is this through a temp agency or is it a contract to hire position? If you are a temp, then it is standard employment, but this doesn't sound like it.

Answer 6

The terms are fully interchangeable. They mean the same thing.

Answer 7

Those terms are the same.

Answer 8

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http://workathomedatentryworks.blogspot.com

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