The Difference Between an Employee and a Contractor

Employee vs. Independent Contractor: How to Make the Best Choice

Since 1978, Nyman Associates has worked with educators and allied health professionals to help them find meaningful employment in settings that value their expertise and training. Over the decades, we have matched thousands of Special Education Teachers, Speech Language Pathologists (SLPs), School Psychologists/Counselors, Occupational Therapist (OTs), Physical Therapists (PTs), Board-Certified Behavior Analysts (BCBAs), and support personnel with school districts and hospitals throughout Southeastern Pennsylvania.

Nyman is unique in that we offer educators and clinicians employment, not contractor positions. However, when selecting a place to work, candidates often ask “what is the difference between an employee and a contractor?”. Understanding when contractors are considered employees can help you decide if a job offer, including pay and benefits, meets your needs and goals. Below are some of our most frequently asked questions about the difference between employee and independent contractor status.

How Can I Tell the Difference Between an Employee and a Contractor?

This question is frequently asked by those attending school to become a clinician or in the early stages of their career. An employee is an individual employed by a business or organization, such as a hospital, medical practice, school, school district, or agency.

Here are some key features of being an employee:

• Direction and Control: The employer typically can direct and control the work performed by the employee, including when, where, and how the work is done.
• Benefits: Employees often have access to benefits like health insurance, retirement plans, professional development funds, and sick time.
• Taxes: The employer is responsible for withholding income, social security, and Medicare taxes from the employee’s paychecks.

An independent contractor is a self-employed individual who provides services on a contractual basis. What is the difference between an employee and a contractor? Here are a few:

• Control Over Work: Independent contractors have more control over how they accomplish their work. The organization hiring them is only interested in the work’s results.
• No Benefits: Benefits are a big difference between employees and independent contractors. Contractors are responsible for managing their health and life insurance, retirement funds, and self-employment taxes since they’re considered business owners.

Are Contractors Considered Employees?

Sometimes, the difference between an employee and an independent contractor is unclear and can be subject to legal interpretation. However, businesses and organizations want to correctly categorize workers, as it is essential for compliance with labor laws and tax regulations.

What is the difference between an employee and a contractor, then? Here are some real-life examples. In both healthcare and education settings, employees could include doctors, nurses, teachers, and administrators. In contrast, independent contractors might include visiting specialists, consultants, substitute teachers, or clinicians who provide specialized or short-term services. 

Are contractors considered employees? Not really. While a contractor may perform work for the business or organization, they will receive no benefits as a clinician and may have few safeguards or support systems to fall back on if troubles arise. 

An Example of the Difference Between an Employee and a Contractor

If you look at the employment opportunities on our website, you’ll see that Nyman Associates hires educators and allied health clinicians to work in school districts and hospitals. We are currently looking to fill many open positions! Let’s walk through a breakdown of the expectations with a Speech-Language Pathologist (SLP) as they explore the difference between employee and independent contractor status in determining if working for Nyman is right for them.

What can an SLP employee expect from working with Nyman Associates?

What is the difference between an employee and a contractor? Take a look at what we have to offer and see for yourself! With all our listed positions, you will be an employee with Nyman Associates. Because of this, we do the following for you:

• Handle taxes and payroll.
• Determine your eligibility for health insurance, retirement plans, professional development, etc.
• Communicate on your behalf with the school district or hospital to ensure professional standards and expectations are met. 
• Provide support if you encounter obstacles or need professional guidance.
• Ensure the work environment is safe and student/patient-focused so you can do your best work.
• Help grow your career meaningfully at each stage of your life. Our opportunities are available part-time and full-time.
• Need support with caseload, schedule development, or technology? We’re here to help!

At Nyman Associates, we understand that the most significant difference between an employee and an independent contractor is the financial uncertainty and work-life balance pressure contractors often experience. This is why we encourage all current SLP independent contractors to consider working with us. Not only will you be rewarded by doing work you’re passionate about, but you’ll also experience a friendly, professional atmosphere. Leave the taxes, red tape, and administrative work to us!

Connect with Nyman Associates

Located in Southeastern Pennsylvania, Nyman Associates has nearly fifty years of experience helping Educators and Allied Health Clinicians secure meaningful employment. We know the difference between an employee and an independent contractor! That’s why all positions we offer are for direct employment, not independent contractor positions. Fill out our contact form, and a member of our support team will contact you. If you have questions about what the difference is between an employee and a contractor and what positions might be a good fit for your skills, they’ll provide all the answers.

We look forward to helping you find a position that appreciates your training and professional experience.