What’s the True Difference Between Employees and Independent Contractors?

The Growing your Team Podcast: Episode 7


Employees or Independent Contractors… do you know the difference?

Many small business owners do not fully understand the difference between the two and hire based on opinions and not fact. However, hiring a team member under the wrong classification can lead to significant fines, fees, and other penalties by the government.

Therefore, I want to ensure that as a small business owner you understand the difference and feel confident that you are hiring the right team member each time. That is why, in this episode, you will learn the basics of the two classifications.

Listen Now:

In this Episode You’ll Hear:

  • What agencies of the government define and monitor the classifications of employees and independent contractors (ICs). (1:38)
  • An overview of what an employee is and what it means for you to own the control of the relationship. (2:45)
  • What ICs really are and how they should interact with your business. (4:10)
  • One of the biggest mistakes I see business owners make when they hire ICs. (5:47)
  • How I was once a misclassified employee and the impact it had on me and the business owner. (6:52)
  • What can happen to you if you misclassify your workers. (11:00)

Suggested Resources:

Are you trying to figure out if your position should be an employee or an independent contractor? The first resource you should check out is the IRS website. View the below links to learn more. If you still are not 100% sure after reviewing the IRS website, it will be in your best interest to consult an employment lawyer. 

Related Episodes:

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Employees and Independent Contractors, Growing You Team Podcast, Jamie Van Cuyk, Small Business