An independent contractor is responsible for the  payment of his or  her own income tax  and social security tax, must provide  his  or her  own workmen's compensation, and is not entitled to and does not receive any benefits such as sick days and holidays plus medical and health insurance, etc..

If an worker is an employee, the employer is required to withhold income tax on wages and is  liable for  the employer's share of the social security (FICA) tax and for the federal unemployment (FUTA) tax.