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What is the difference between an independent contractor and an employee?

Video Transcription:

There are several differences between an independent contractor and an employee. The first and foremost, it’s how they’re paid. Independent contractors are paid with a 1099 and no taxes are taken out. Whereas an employee is paid with a W2 and the employer takes out certain taxes. The second important distinction is, that with an independent contractor the payer or employer can only direct the result of their work. Whereas with an employee the employer has the right to control and direct the details of their work.

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