The independent contractor has no job security. As an employee, the worker is paid as long as he or she has the job, even if the employer s business is slow. If the IC does not have the business, they do not make any money. The IC also has no employer-provided benefits. Employers will usually provide their employees with health insurance, paid sick leave and paid vacations.
ICs get no such benefits.
They must pay for their own health insurance, often at higher rates than employers are able to pay. Any time lost due to vacations and illness comes directly out of the IC s bottom line. The safety net provided by unemployment insurance is not there for the IC either. They cannot collect unemployment when the work for the client is terminated or the contract runs out. If a work-related injury is an IC s fault, he or she has no recourse against the hiring firm.