Q&A: what is the difference in contract labor and regular employment?

Question by detroit_city_girl@yahoo.com: what is the difference in contract labor and regular employment?
Recently I have been working for someone as a contract laboror and they have mentioned to someone else in the office that they are going to need to take taxes out on me if i continue to work there. Is this good or bad?

Best answer:

Answer by Cunning Linguist
Contract labor: you are hired to do a specific project or job, often within a timeframe or before a completion date. You are not actually an employee of the company, and they do not withhold taxes from your pay. You are responsible for paying your own taxes at the end of the year.

Regular employment: you hold a position within the company, for the purpose of doing a function that continues to be part of the normal operations.

No, they don’t “need” to take taxes out on you. You can continue to work as an IC for as long as you want. But it is in your best interest for them to consider your an employee.

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