From Hiring An Electrician —
In general, an independent contractor is an individual who is in business for him or herself and maintains independence from the business he or she is performing the service for, whereas an employee works for and performs services under the control of the business receiving the service.
The IRS and the state of Florida base worker classification on “common-law” factors designed to gauge the amount of control the business has the right to exercise over the worker. Two frequently cited factors of an employee-employer relationship are that the business is maintaining the right to discharge the worker at will and / or the business is providing the worker tools and a place to work. By comparison, individuals who are truly independent contractors generally provide their own tools and work place, they have business licenses, and are engaged to complete specific projects and cannot be terminated without cause from a specific project. There are no hard-and-fast rules as to who is an employee and who is an independent contractor. All possible factors pertaining to the business’s control and the worker’s autonomy must be taken into account.
Read the full story at Employee Vs Independent Contractor [article no longer available]