Top What is the difference between an employee and an independent contractor?
From the insurance company’s standpoint, the coverage is exactly the same for an employee and an independent contractor and it doesn’t matter how they are listed on the certificate of membership. The differences between an employee and an independent contractor are mostly tax driven. An employee will have his or her taxes withheld by the employer and receive a W2 at tax time while an independent contractor will not have his or her taxes withheld and will receive a 1099 at tax time. Also, the employer and employee each pays half of FICA (Social Security) and an independent contractor would pay 100% of FICA.
