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This question is about careers.
Contractor vs. full-time
The differences between a contractor and a full-time employee include their contract with the employer, access to benefits and paid time off, and whether you are getting paid on a salary or an hourly rate versus per project.
Overall, contractors are not employees and do not receive benefits such as healthcare, vacation, or retirement plans, and they are paid per project or services rendered.
A contractor is an individual or organization hired to perform a specific task or provide a service for a certain period, typically for an agreed-upon fee. A contractor is usually not an employee of the company and therefore does not receive benefits.
A full-time employee, on the other hand, is an employee who works a set number of hours or a minimum number of hours a week or month, regardless of the amount of work performed. Full-time employees typically receive healthcare, vacation or sick leave, and retirement plans.
Key Takeaways:
| Contractor | Full-time |
|---|---|
| Paid for specific project or task | Paid fixed salary for ongoing work |
| Not subject to certain employment laws | Subject to certain employment laws |
| Usually required to provide own equipment and supplies | Employer usually provides equipment and supplies |
| Usually not eligible for benefits | Eligible for benefits such as health insurance, paid time off, etc. |
| Not subject to certain employment laws | Subject to certain employment laws |
| Usually not eligible for overtime | Eligible for overtime |
| Generally not entitled to severance | Generally entitled to severance |
| Tax forms are issued at end of year | Tax forms are issued each pay period |
| Generally not entitled to unemployment benefits | Generally entitled to unemployment benefits |
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