An Employee is an individual who contributes labor and expertise to an endeavor. There are different classifications of workers within a company. Some are full-time and permanent and receive a guaranteed salary, while others are hired for short term contracts or work as temps or consultants. These latter differ from permanent employees in that the company where they work is not their employer, but they may work through a temp-agency or consulting firm.
Associate is a term used by some companies instead of employee. Big box retailers like Wal-Mart and Home Depot, for example, use this term for non-management employees. Other firms use terms such as teammate or team member instead of Employee.
Tax considerations regarding different types of employees
In the U.S., an employee, or sometimes called common-law employee, is, under common-law rules, anyone who performs services for you as a business owner or manager if you can control what will be done and how it will be done. This is so, even when you give the employee freedom of action. The term is used by the U.S. IRS to determine the way in which income tax is collected from the individual. The general rule that will determine whether or not the IRS considers the worker an employee is whether or not you have the right to control the details of how the services are performed.
- Category:Human resources
- Independent contractor
- Statutory employee
- Statutory nonemployee
- How to determine if a worker is an independent contractor or an employee?