One of the most important distinctions in employment and other areas of law, is that between an employee and an independent, or self-employed contractor. It has long caused unexpected upsets in otherwise amicable commercial relationships. This is not an area which stands still for long, and we raise here two questions which now increasingly need to be taken into account. Job advancement has been very anemic. Independent contractors are being employed increasingly more often to fill jobs that employees used to do. Before you sign on as an independent contractor, it is very important to understand the differentiation. Thus, Making the difference; employee vs independent contractor IRS was done.