When you’re looking for a job, it’s important to know what type of relationship you’ll have with your employer. Independent contractors and employees are two different types of workers that offer different benefits and responsibilities. 

Keep reading to learn about the main differences between an employee and an independent contractor.

What’s An Employee?

Employees are full-time workers that have a contract with their employer to do specific tasks. They’re often given benefits like sick leave, vacation time, and health insurance coverage. Employees also get tax forms at the end of the year to report earnings for income taxes.

What’s An Independent Contractor?

Independent contractors are self-employed workers that offer a service to companies. Independent contractors can set their schedules, but they don’t receive health insurance or sick leave benefits. They also get tax forms at the end of the year to report earnings for income taxes.

Responsibilities Of An Employee

  • Take appropriate precautions for their safety and well-being.
  • Take precautions to protect others who may be affected by their behavior or actions.
  • Collaborate with the employer on everything they do to meet OHS regulations.

Responsibilities Of An Independent Contractor

  • Handling queries from the customer as needed. Working with the customer to clarify job requirements as necessary.
  • Collecting the resources required to finish the task.
  • Overseeing the project from start to finish.
  • Tailoring your approach to the job’s requirements, as needed.
  • Assignees should instantly and communicate assignment-related difficulties with the client.
  • Assessing the quality of work that has been completed.
  • Getting things done by setting deadlines.
  • Completing and submitting your tax returns on time.

Who’s In Charge Of Getting Insurance When You’re An Employee?

Employees can apply for health and life insurance with their employer. Employees are also able to receive dental and vision insurance through their employers.

Who’s In Charge Of Getting Insurance When You’re An Independent Contractor?

Independent contractors must get their health, life, dental, and vision insurance. They can do this by applying for an ISP (Independent Service Provider) policy or finding an insurance agency specializing in independent contractors.

For example, if you’re an independent contractor who delivers packages for a living, your ISP would be the company that provides your health and life insurance. As an independent contractor, you are not employed by the delivery company, so they aren’t responsible for providing you with benefits.

Get Your ISP Insurance With Paradiso Insurance

At Paradiso Insurance, we understand that independent contractors have unique insurance needs. We offer an ISP policy specifically designed for independent service providers as an insurance agency. Get your insurance with us today.