Employee facts for kids

An employee is a person who works for a company, an organization, or even a community. These people are often called the staff of that group. Generally, an employee is someone hired by an employer to do a specific job. In return, they get paid.

There are different kinds of employees. In many countries, employers must follow certain rules. For example, they might need to pay a minimum wage. They also have to provide a safe place to work. Sometimes, they even pay taxes for their employees. Employers often give official employees benefits too, like health insurance.

Because of these rules and costs, some employers prefer to hire independent contractors. An independent contractor is someone who works for themselves. In the United States, a worker is an employee if their employer tells them what to do, how to do it, and when. An independent contractor gets to make their own choices about how to do the work.

The way an employer and employee work together is different from how a company works with a customer or client.

Before getting a job, an employee usually needs to provide a resume. They also often have an interview before being offered the job.

What are Independent Contractors?

Some employers like to hire independent contractors. These workers are technically running their own small businesses. Employers often choose them because they don't have to follow all the same laws.

For example, in the United States, an employer pays part of an employee's social security taxes. The employee pays the rest. But a self-employed person, like an independent contractor, pays all of their own social security taxes.

Employee vs. Independent Contractor: An Example

Let's think about a plumber.

• If a company calls a plumber every time a pipe leaks, that plumber is an independent contractor. They fix the leak and get paid for that specific job.
• If a company hires a plumber to be part of their team, that plumber is an employee. The company must pay the employee plumber regularly, even if there are no leaks to fix that day.

The company must also follow minimum wage laws for the employee plumber. They might also provide other benefits. The employer gets to tell the employee plumber what to do and how to do it. They can make the employee plumber follow a dress code. They can also make them work a set schedule, like other employees.

An independent contractor plumber, however, gets to decide when to work. They usually make an appointment with the employer. They also get to wear what they want.

Rules for Hiring Contractors

Sometimes, companies hire independent contractors but then treat them like regular employees. This means they tell them exactly what to do and when. This can cause problems for the company. In the United States, the Internal Revenue Service can take legal action against companies that pretend their employees are independent contractors.

Images for kids

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  Wiki-training with employees of Regional Institute of Culture in Katowice

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  A worker building rebar for a water treatment plant in Mazatlan, Sinaloa, Mexico.

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  A call centre worker at their workstation.

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  A chart showing employees in private industries by different types of businesses.

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  A chart showing how many people work for the government in the EU compared to all jobs.

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  A chart showing how many young people (15-24 years old) in the US have jobs.

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  A worker in Dhaka, Bangladesh.