The main difference in payments to independent contractors is considered per project they complete. The wage is different for an employee and a contractor. As a contract worker, you are not paid by wage and hour. An independent contractor has no employee benefits. Since they are not employees of that company. An employee is paid an hourly wage for the company they work for. They are payment employees who are paid by a set schedule. The minimum wage is entitled to an employee along with other employee benefits. Employment laws vary vastly among employees and independent contractors.