The distinction between contractor vs employee lies in the level of independence and control over work arrangements.
An employee works under an employer's control and receives benefits like paid leave, while a contractor operates their own business, providing services under a contract for an agreed fee.
Contractors are responsible for managing their own superannuation and tax obligations, unlike employees who have these handled by their employer.
For example, a graphic designer hired as a contractor may work on multiple projects for different clients without being subject to the same rules as a full-time employee.
