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Do you know the difference between Workers and Contractors?

Updated: Oct 1, 2021

Do you have employees or contractors? How do you need to track them differently in Quickbooks Online?


What is the difference between employees and contractors? Employees are paid through payroll and you pay a portion of the taxes. Contractors are paid and then responsible for their own taxes. Be very careful as a business owner to make sure if you have contractors that they are actually contractors! Many business want to avoid paying the employees taxes so they try to justify they are contractors!


Contractors work at their own schedule, supply their own tools, and materials, they are someone that you hire to work for you, but most of the time work for other companies as well. If you supply the computer, office space, they have to work a set hours, and/or they are required to met certain deadlines they are employees!





Learn more about workers and contractors watch this video:



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