1. Why would an employer prefer to classify a worker as an independent contractor versus an employee?

2. Alternatively, from the individual worker's standpoint, what are the pros and cons of being an employee versus an independent contractor?

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1. Why would an employer prefer to classify a worker as an independent contractor versus an employee?

When a worker is an independent contractor rather than an employee, the organization is not required to withhold income taxes, pay unemployment taxes, pay FICA (Federal Insurance Contribution Act) taxes, or provide employment benefits. The IRS defines an employee as "anyone who performs services for you, if you can control what will be done and how it will be done". Alternatively, independent contractors offer their services but have control of how the work is done. Independent contractors give control of the end result of the work to the payer, but have control of how the work is completed unless it is specified in the work contract. This allows the organization to be hands off while ensuring the work is completed to their specifications.

2.Alternatively,from the individual worker's standpoint, what are the pros and cons of being an employee versus an independent contractor?

An employee does not have to be concerned with withholding income or FICA taxes like an independent contractor would. Employees typically have these taxes withheld from their paycheck, along with access to benefits provided by the employer (401K match, Short-Term Disability, PTO, etc.) While being an independent contractor may come with more independence, they are required to handle their with holdings and take on more responsibility in the instance of an unexpected life event. Employees of organizations not only have to be concerned with the end result of a product or service, but they must also take into consideration how the work is completed.