A guide to the differences between how a business handles the hiring process of the two aforementioned types of employees.

1. HIRING A
HIRING A
FREELANCER
FREELANCER
VS. FULL-TIME
VS. FULL-TIME
EMPLOYEE
EMPLOYEE
AVAILABILITY
Freelancer: kept in line with
meeting objectives or deadlines
• Time zones and working
hours may differ affecting
communication or monitoring
Freelancer: Usually has a set rate
they charge for a project or services
but can be negotiated
• Used to keep low headcount as
well as overall costs
Freelancer: Pays self-employment
tax and must be provided with the
appropriate tax forms
• The process can be
streamlined by outsourcing
tax form reporting
Freelancer: Is responsible
for/pays for their own benefits
Freelancer: Has little to no
requirement of training as they
are procured for an existing skill
Freelancer: Sees the company as a
client and, therefore, its success is
not their priority
Freelancer: Less risk involved as
freelancers have fewer rights to
insurance, workers’ comp, etc.
Full-time Employee: Hours set by
the employer, could include a hybrid
or virtual workplace arrangement
Full-time Employee: Salary set by
the employer or negotiated at the
start of contract
Full-time Employee: Company
withholds and pays taxes, including
social security, Medicare tax, etc.
Full-time Employee: Company
provides benefits
Full-time Employee: There are
usually greater requirements for
training and onboarding
• May also include investing
in upskilling
Full-time Employee: Likely to feel
a higher level of commitment to
an organization
Full-time Employee: Standard risk
BENEFITS
TRAINING/MANAGING
INVESTMENT
RISK
hire.trakstar.com/blog/freelance-vs-fulltime-pros-cons-hiring-independent-contractor
www.recruiter.com/recruiting/freelance-vs-full-time-when-to-hire-which-type-of-talent/
www.coverwallet.com/business-tips/freelance-full-time-employees
www.usemultiplier.com/blog/freelancer-vs-employees
teampassword.com/blog/hiring-freelancers-vs-full-time-employees-which-is-better
TAX RESPONSIBILITY
PAYROLL/SALARY