What is an employee?

How Does an Employee Work?

An employee is a type of worker that an employer can hire to perform a specific job. Employers control how employees are paid, when they work, and how they work. In return, employees receive benefits that contractors do not receive.

Employee Requirements

Each employee has a specific job that they must complete, which is often outlined in a job description. In responsible organizations, development planning work defines the employee’s practical performance and the organization’s expectations for the employee’s performance.

Employee vs. Contractor

The difference between an employee and an independent contractor can be complex. Both perform tasks in exchange for pay. Companies trying to determine whether a worker is an employee or a contractor can consider three factors. There is no specific threshold that makes a worker one or the other. Companies must carefully consider all relevant factors to decide how to treat the worker.

Frequently Asked Questions (FAQs)

What is an exempt employee?
An exempt employee is one who meets certain criteria that exclude them from overtime pay protections covered by the Fair Labor Standards Act (FLSA). The most common type of exempt employee is the salaried (non-hourly) worker who earns at least $684 per week. There are other professions, such as computer workers, that have lower thresholds. Some types of employees, like teachers and medical professionals, are not subject to these salary thresholds.

What is a 1099 employee?
A 1099 worker is not an employee at all; they are an independent contractor. Instead of filling out a W-4 form and using a W-2 form for tax filings, independent contractors fill out a W-9 form and use a 1099 form for tax filings.

What is a non-exempt employee?
A non-exempt employee must be paid for overtime under certain conditions. Many employees fall into this category and typically receive extra pay for working more than 40 hours in a week (according to state law).

Source: https://www.thebalancemoney.com/what-is-an-employee-1918111