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Knowing whether a worker is an employee or an independent contractor is important for both workers and employers. Any worker should understand how they are classified, and what it means. As an independent contractor, you may have more freedom to choose how you complete your work, but you are responsible for paying your own taxes, getting your own health insurance, and paying into unemployment and workers comp funds if you wish to access those benefits. If you are an employee you are under the control of your employer, but also may have certain benefits provided by your employer including workers compensation, unemployment, and health insurance. Employers must be careful to make sure that workers are properly classified because a worker's title does not determine whether they are an employee or independent contractor. It is the nature of the relationship that matters, and employers can be subject to stiff penalties if they misclassify workers. To find out more about what an independent contractor is and what the independent contractor status means for workers and employers, read below: