A freelancer is a self-employed individual who works for various clients as their own boss. In contrast, an employee is hired by a single company. While freelancers usually work on shorter projects, employees are committed to a specific role within the company. Freelancers and independent contractors are responsible for their own tax contributions and are not eligible for company benefits such as health insurance contributions. The company manages employee tax contributions, and their contract usually includes additional perks. Take note: A digital nomad could be a freelancer or an employee that works remotely. If hiring non-US citizens as digital nomads, it’s important to remain compliant.