| Work Status |
Self-employed; provides services under a contract. |
Employed directly by the company with employer oversight. |
| Taxes |
Responsible for filing own federal, state, and self-employment taxes (you can get a breakdown report from company HR). |
Employer withholds federal, state, and payroll taxes. |
| Control Over Work |
Sets own schedule, methods, and tools. |
Follows employer-set schedules, processes, and supervision. |
| Benefits |
Not eligible for company benefits but company perks offers may be available. |
Eligible for employer-provided benefits, depending on policy. |
| Equipment |
Typically provides own equipment and tools. |
Employer often provides equipment and system access. |
| Payment Process |
Paid per contract terms; no tax withholding, paystub & pay report provided. |
Paid through employer payroll on a set schedule. |
| Job Flexibility |
High flexibility; can work multiple contracts and set availability. |
Less flexibility; must follow employer scheduling and policies. |