what is the difference between a general contractor and an independent contractor?
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General Contractor. An "independent contractor" is an entity with whom a principal/owner directly contracts to perform a certain task or tasks. A "general contractor" is an entity with whom the principal/owner directly contracts to perform certain jobs. ...
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An independent contractor is a person or entity contracted to perform work for—or provide services to—another entity as a nonemployee. As a result, independent contractors must pay their own Social Security and Medicare taxes.
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What Is the Difference Between an Independent Contractor Courier and a Delivery Driver? An independent contractor courier and a delivery driver both carry items like packages and documents. However, a delivery driver is a company employee.
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Freelancer. ... The main difference between contractors and freelancers is that contractors only work for one client at a time, whereas freelancers will generally work on multiple projects for more than one client. The amount that freelancers charge for their services will depend on their area and the work involved.
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An independent contractor can itself be a business with employees; however, in most cases in the United States independent contractors operate as a sole proprietorship or single-member limited liability company.
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Generally speaking, the difference between independent contractors and employees in California is whether or not the entity paying for services has the right to control or direct the manner and means of work (tending to signify an employment relationship), or whether the person providing the services has independently ...
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2 Answers. A contractor is a kind of vendor. So if the business involves independent transactions, the seller is just a vendor; if there's an ongoing relationship described in a contract, they're a contractor. ... Vendor may provide a service or product requested by the customer and they submit a request for payment.
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Independent contractors are not employees and are generally not entitled to the same rights and protections extended to employees, including: Employee benefits plans, such as health insurance. Employee fringe benefits, such as paid vacation. ... Wage and hour standards, such as minimum wage and overtime pay.
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Independent contractors are not entitled to the minimum wage because, even though they do work for a company, they are not legally considered employees of that company. Independent contractors—such as consultants and freelancers—work for hire.
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Independent contractors do not receive workers' compensation benefits. The workers' compensation system only applies to employees. The difference is important if you are injured doing work for an employer.
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Independent contractors are not employees and are generally not entitled to the same rights and protections extended to employees, including: Employee benefits plans, such as health insurance. Employee fringe benefits, such as paid vacation. Federal, state, and local income tax withholding.
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Independent contractors have no entitlement to Employment Standards Act benefits or protections. Employees are paid wages with payroll deductions such as CPP, IE and Income Tax taken by the employer. ... Independent contractors run their own business and can provide services to multiple clients at one time.
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You probably knew this already, but the actual difference is that typically, general or prime contractors are hired directly by the property owner, while subcontractors are typically hired by a party other than the property owner.
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The employer has the responsibility and power to control over his employees whereas for the independent contractor there is no power of control but the party requiring the services can determine the date for the work to be done. For the employee is entitled to the payment of wages and salaries.
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They are used somewhat fuzzily interchangeably, but when there is a distinction, it is that a freelancer is self-employed possibly with a contract whereas a contractor may or may not be self-employed with an employment that is usually defined by the terms of their contract.
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An independent contractor must pay the higher self-employment tax. As this scientist's income increases, he will face a noticeably higher employment tax burden as an independent contractor. An employee may be able to obtain better benefits than an independent contractor.
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Unlike the general contractor, a home builder does not subcontract with anyone, nor does he help with the planning or execution of the big picture. On the other hand, a home builder will completely build a house from start to finish, which is much more desirable for some people.