The company that hires you as a contractor will determine your employment classification by answering a series of questions. Below are the major differences in contracting as an Independent Contractor or a Contract Employee.
1099 - Independent Contractor |
W-2 - Contract Employee |
Hired provides a venue for contracting opportunities |
Hired provides a venue for short and long term assignment opportunities |
Hired facilitates Agreements between Hired, Client and Contractor |
Hired facilitates Agreements between Client and Hired |
Hired handles billing the client |
Hired pays you each week while you’re on assignment |
Hired pays you prior to client paying the invoice |
Hired reports all employment taxes |
Hired handles collections from Clients |
Hired matches your social security benefits and pays your Medicare taxes |
Hired pays completion bonuses |
Hired handles collections from Clients |
Hired provides compliance services |
Hired generates a w-2 at the end of the year |
Hired generates a 1099 to contractor |
Hired offers Health Insurance benefits to eligible employees |
Legal review of contracts |
Hired provides Workers compensations coverage |
Hired provides Error and Omissions Insurance |
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Hired Provides unemployment insurance when an assignment ends |
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Hired protects you from unfair exploitation, and discrimination by employers |
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As an employee you are guaranteed payment for hours worked |
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Hired provides paid sick time |