Federal income tax treatment differs between employees and independent contractors. Employees have income taxes automatically withheld from paychecks, while independent contractors must pay estimated taxes. The IRS determines if a worker is an employee based on the degree of control over how work is done, among other factors like benefits and permanence of the relationship.

1. Federal Income Tax:
From a taxable income perspective, is it better to be an
employee or an independent contractor? Why? How is the
determination between what constitutes an employee and an
independent contractor made?
Please post at least 200 words with references