There are key differences between employees and independent contractors. Employees have taxes withheld from their paychecks and can deduct unreimbursed business expenses. Independent contractors receive a 1099 form and are responsible for income and self-employment taxes. The IRS looks at factors like instructions, investments, expenses, and benefits to determine status. Contracts between APNs and organizations should address scope of work, confidentiality, compensation, termination, disputes, and other important terms.