Occasionally I hear from freelance writers who mistakenly think they’re employees. Some even list clients as employers on LinkedIn. I don’t think I’ve ever run into the reverse. In the United States, there’s a clear distinction between the two, and it’s important to know which you are.

If you’re an employee, you filled out a W-2 form for the IRS, and your employer deducts taxes from your paycheck. If you’re a contractor, you’re self-employed. You get a 1099 reporting your income, and normally the IRS collects the tax through estimated tax payments or with the 1040 in April. You get the privilege of paying double Social Security tax. On the positive side, you can deduct business expenses, perhaps even a home office.
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