Employee and Contractor at a glance
| Point | Employee | Contractor |
|---|---|---|
| Relationship | Employment relationship with payroll and workplace obligations. | Independent business relationship governed by the actual facts, not only the contract label. |
| Control and independence | Employer may direct how, when, and where work is performed. | Greater business independence may exist, but legal tests vary by law and jurisdiction. |
| Records | Offer, payroll, time, benefits, policies, supervision, and performance files. | Services agreement, invoices, business records, project control, tools, and other clients. |
| Main risk | Wage, leave, benefits, payroll-tax, and workplace compliance. | Misclassification, tax, wage, benefit, IP, and insurance exposure. |
| Verify | Actual duties, location, pay practices, and every applicable test. | Actual working relationship, not a checkbox or title selected by the parties. |
Documents to put side by side
- The current draft or signed document for each option.
- Definitions, schedules, amendments, approvals, notices, and incorporated policies.
- A written business objective, timeline, cost model, and risk list.
- The primary source or professional advice that applies to the jurisdiction and facts.
Sources to verify
Use primary or authoritative sources to confirm current forms, filing instructions, agency rules, and legal definitions before acting on a general guide.
When professional help is useful
Use qualified advice before relying on a comparison for enforceability, tax treatment, worker status, privacy transfers, securities, regulated disclosures, litigation strategy, or a material transaction.
Before sharing records
- Keep originals in a controlled file and review a clearly dated working copy.
- Redact sensitive data unless the recipient is authorized and needs it.
- Label each document with its date, parties, version, jurisdiction, and status.
- Ask one focused question and identify the desired business outcome.