Hiring an Employee vs. a Contractor: The Financial Difference Explained
It starts innocently enough.
You need help. A neighbor does great work. A college student is available. A freelancer reaches out at just the right moment. So you bring them on, pay them for their time, and move forward.
And then, months later — sometimes years later — you find out that the way you classified that worker didn't line up with how the IRS sees it. And the cost of that misalignment isn't small.
Employee vs. Contractor: Key Differences and Legal Implications
When it comes to hiring workers, businesses have two main options: employees or contractors.