E is for Employees
In this Instagram reel, I talk about employees.
As in, employees and independent contractors.
These are people who work for you or with you, and they MUST be classified as one or the other – either an employee or an independent contractor. And though they are both types of team members, employees and independent contractors are not the same.
An employee relationship has more requirements from state and federal governments (things like withholding taxes, paying into disability, meeting minimum wage, maintaining worker’s compensation insurance, etc.). An independent contractor relationship doesn’t have this same level of requirements and is instead governed by the terms of the contract with that person or company.
It’s important to classify your employees or independent contractors correctly because there are very real consequences (like fines) if you get it wrong. Because the factors that go into the classification are very state-specific, I always recommend talking to your attorney to make sure you’ve got your team members classified correctly.
