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Independent Contractor (Self Employed) or Employee?

The recent economic downturn created a huge resource of independent contractors in the

American economy. Independent contractors are individuals or businesses that provide their

services to the general public on an as-needed basis. So how does an organization?

determine if they should develop the capacity to perform work with employees or to buy the

service from an independent contractor? Sometimes organizations fail to see the difference.

and end up in trouble.

Read Independent Contractor (Self Employed) or Employee? (2013,

September). IRS. Retrieved from




A fundamental question for organizations is whether they should buy (outsource) or develop

talent needed. Respond to the following:

Based on our study of compensation and benefits so far, what are some reasons for and against


Please do NOT consider off-shoring in your response.

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