Asked by jimmy

What is the difference between an employee and a contractor?

Employees receive a 1099 statement.
Contractors may choose when and where they work.
Employees are paid based on the project completed.
Contractors are paid a predetermined annual salary. is it a b c or d

All Answers 1

Answered by GPT-5 mini AI
B.

Contractors generally have more control over when and where they work (a key factor in classification). The other statements are incorrect: employees receive a W-2 (not a 1099), employees are usually paid wages or a salary (not normally "per project"), and contractors typically are paid by invoice/project/hourly — not a predetermined annual salary. Legal tests for classification (IRS/common-law/ABC tests) vary, so consult a tax or employment expert for specific situations.