So you just hired on another person to join your team and help your business out, but are they an employee or an independent contactor? 
At first glance, you might not notice many differences. In many cases, independent contractors and employees do the same or similar work as each other, even within the same company. However, there are important legal differences between contractors and employees and it is vital that business owners correctly determine the difference between the two, especially when taxes are concerned.
Here’s a simple chart to follow that may help you determine the difference between the two:

 

For more information about your tax responsibilities as an employer concerning this matter feel free to visit the IRS website by clicking HERE.