We’re about to answer those questions for you.

Key takeaways:

• Independent contractors are self-employed and are not legally-entitled to the same benefits and protections as full-time employees.
• Full-time employees are considered employees of a company and are entitled to certain benefits and protections.
• When deciding whether to hire an independent contractor or a full-time employee, it's important to consider the specific needs of your business and the type of work that needs to be done.

What is an independent contractor, and how are they different from employees?

An independent contractor is a self-employed individual who provides services to clients on a project-by-project basis. They are not considered employees and therefore are not entitled to the same benefits and protections as full-time employees, such as minimum wage, overtime pay, and unemployment insurance.

Independent contractors are typically paid based on the work they complete, and they are responsible for their own taxes, insurance, and benefits. They also provide their own tools and equipment and set their own schedules.

In contrast, full-time employees are considered employees of a company and are entitled to certain benefits and protections. They are typically paid a regular salary, receive health insurance and other benefits, and are subject to taxes and other deductions from their paychecks.

One key difference between independent contractors and full-time employees is the level of control that the employer has over their work. Independent contractors have more control over their work and are considered to be in business for themselves, while full-time employees are subject to the direction and control of their employer.

When deciding whether to hire an independent contractor or a full-time employee, it's important to consider the specific needs of your business and the type of work that needs to be done. If you need someone to complete a specific project, an independent contractor may be the better option. However, if you need someone to work for you on a regular basis and are willing to provide benefits and protections, a full-time employee may be the better choice.

It's also important to consider the legal and compliance implications of hiring independent contractors versus full-time employees. In some countries, there are specific laws and regulations that govern the classification of workers, and misclassifying an independent contractor as an employee can result in legal and financial consequences.

Understanding the differences between independent contractors and full-time employees is crucial for any employer looking to hire workers. Be sure to consider the specific needs of your business and the type of work that needs to be done, as well as any legal and compliance considerations, when making your decision.

Hiring contractors? Thera can save you a ton of time

You don’t need to issue W-2 forms to your contractors. But, if you are hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo.