What are the differences between employees and independent c

What are the differences between employees and independent contractors? Please provide examples for each. Is it possible for an employer to reclassify all of his employees as independent contractors? Explain why or why not.

Solution

There are some noticeable differences between employees and independent contractors:

Example: Alibaba is the largest B2B ecommerce firm which has two types of employees, one set of employees is on the payroll of Alibaba whereas one set is on third party i.e. independent contractors. The company has a lot of liability for pay roll employees whereas for independent contractor company is not very concerned and almost zero privileges are provided for independent contractor employee.

No it is not possible to classify all the employees as independent contractors as it is not permitted by employment laws, each company has to maintain a minimum percentage of pay roll employees and just to evade Taxes Company cannot make all employees as independent contractor employees. It is necessary to ensure that any employee who is being converted form pay roll employee to independent contractor should adhere to all independent contractor legal considerations.