Who is a Contract Worker?
Independent contractor, contingency worker, contract employee, temporary worker, freelancer, just-in-time worker and casual workers are all names for contract labor. Businesses have discovered that it is more cost effective to use contract labor than hire a full-time, permanent employee to maintain the competitiveness in the global environment. Contract labor can also be credited with the expansion of new businesses. There are many differences between a contract worker and a permanent employee that companies should be aware of. Independent contractors own their own businesses, therefore they are responsible for paying their own taxes, Social Security, Medicare and professional malpractice insurance. Permanent employees are generally responsible for specific tasks that are repetitive and narrowly and rigidly defined. Independent contractors are brought in for specific assignments within a project and leave once the project has been completed. Therefore, allowing human resource costs to
