This infographic outlines the key differences between independent contractors & employees as well as uncovers some of the common reasons for misclassification. The misclassification of employees as independent contractors presents one of the most serious problems facing affected workers, employers and the entire economy. It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors.

By some estimates, contingent or temporary workers could reach 30%–50% of the U.S. workforce. A federal study contends that an estimated 3.4 million employees are classified as independent contractors when they should be reported as employees. This infographic is an attempt to eliminate some of the confusion surrounding the topic as well as outline the legal ramifications.

Infographic by New Jersey Misclassified Employment Infographic