The arrangement.
WHAT DIFFERS
Employment carries obligations: notice, entitlements, deductions.
A contract for services is a commercial arrangement.
WHY IT MATTERS
The obligations differ substantially, and the distinction is not simply what you call it.
WHAT DETERMINES IT
How the relationship actually works: control, integration, exclusivity, who provides tools.
Not the label on the agreement.
WHAT TO TAKE ADVICE ON
Which applies to your situation.
This is worth asking an accountant or an adviser about once.
WHAT TO AVOID
Calling someone a contractor while treating them as an employee.
That can be reclassified, with consequences.
FOR SHORT OR OCCASIONAL WORK
A contract arrangement is usually appropriate.
FOR SOMEONE WORKING FOR YOU FULL TIME, EXCLUSIVELY, UNDER YOUR DIRECTION
That resembles employment.
WHAT TO PUT IN WRITING
Whichever it is, the terms.
WHAT TO ESTABLISH
Payment, notice, confidentiality, ownership of work.
WHERE TO GET HELP
Visit zillionkinghost.com for further information, and take proper advice.