IC

Employee

No benefits, i.e., insurance, paid time off, etc.

Possibly benefits. They vary with the company.

Schedule flexibility. Do work at any time as long as you meet TAT.

Usually have a set shift, regardless of your production. In other words, you have to be transcribing during certain hours, no matter how many lines you’ve produced.  It’s possible that this may not be the case with some companies, but it is usually the case.

Taxes are complicated.

Taxes are simple.

You have to pay 100% of your social security self-employment tax.

Employer pays half of your social security tax.

More tax deductions.

Fewer, if any, tax deductions.

You will never be paid for down time.

You might be paid for down time.

You carry 100% of the cost of whatever you need to get the job done.

Some companies furnish their employees with computers, software, internet connection, etc.