Question

In a brief paragraph, compare a regular employee's total compensation to that of an independent contractor or a self-employed worker.(4 points)

Answer 1

A regular employee's total compensation typically includes not only their hourly wage or salary but also a range of benefits such as health insurance, retirement contributions, paid time off, and other perks provided by the employer. This results in a comprehensive package that might significantly increase the overall value of their compensation. In contrast, an independent contractor or self-employed worker usually receives only their fee for services rendered, without additional benefits. While they may have the potential for higher hourly rates and greater flexibility, they must also cover their own expenses, such as health insurance and retirement savings, which can reduce their effective earnings compared to a traditionally employed worker.