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

Supplemental to Internal Revenue Service (IRS) Federal Regulation, IRC Section 31.3121(d)-1(c)(2).

Employee

  1. An employee is an individual hired by an employer to provide services.
  2. The employer has the right to control and direct the employee concerning the result to be accomplished and the method by which that result is accomplished.

Independent Contractor

  1. An independent contractor is an individual who is directed by the University only as to the end result of the services being performed.
  2. This individual is not provided guidance by the University on the methods and means of accomplishing the result.
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