---
title: What is difference between employee and contractor?
description: When it comes to determining an employee from an independent contractor, many business owners are unsure how to identify a worker's classification. Read more.
---

[Trout CPA Blog | Tax & Business-Related Topics ](https://www.troutcpa.com/blog)

# [What is difference between employee and contractor?](https://www.troutcpa.com/blog/employee-vs-contractor-infographic)

 Written by [Trout CPA](https://www.troutcpa.com/blog/author/troutcpa) | Jan 11, 2019 4:30:01 PM

When it comes to determining an employee from an independent contractor, many business owners are unsure how to identify a worker's classification. The table below highlights some of the differences between an employee and an independent contractor.

Employee

- W-2 Form
- Works for mainly 1 company at a time.
- The employer controls income.
- Paid on a consistent basis (e.g., hourly, weekly, monthly)
- May be eligible for overtime pay.
- Income, Unemployment, Social Security & Medicare taxes are withheld from wages paid.
- They can qualify for the company and government benefits.
- Part of the company's daily workings with a continuous ongoing relationship and integrated responsibilities.
- Follows guidelines to how, where, and when work is to be completed.
- Is trained by the company to perform their job.
- They are provided tools to do the job.
- They are subject to firing, discipline, and rewards.
- They can terminate their services at any time.

 

Contractor

- 1099-NEC Form
- They may do work for multiple companies at a time.
- The individual determines income profit or loss.
- They are paid per invoice submission or upon completion of the job.
- They are not eligible for overtime pay.
- No taxes are withheld from payment for services provided.
- They are responsible for seeking and arranging their benefits
- Hired when needed.
- Establishes how and when work is to be completed.
- They are already trained and skilled to perform the job.
- Brings own tools, equipment, and materials to work site.
- Is responsible for self-employment.
- They are required to complete contracted work.

 

At Trout CPA, we understand it can be confusing to determine if a worker is an independent contractor or an employee. For assistance, don't hesitate to get in touch with us at 717-569-2900 or complete the form below.

[View full post](https://www.troutcpa.com/blog/employee-vs-contractor-infographic)

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