EMPLOYMENT AND INSURANCE LAW

Employment and Insurance Law



Employment and Insurance Law

Why is it important to identify whether a “worker” is an employee or an independent contractor?

The distinction between employees and independent contractors is significant, because an employer should deduct Social Security/Medicare taxes from employees and should pay an equivalent amount to the Social Security Administration. If an individual is working as an independent contractor, the "employer" does not make Social Security/Medicare deductions, and the independent contractor should pay his or her own "self-employment taxes" along with income tax on earnings. (Holloway, 2002, pp: 26) To assist distinguish between employees and independent ...