Which is better for companies, having independent contractors or hiring employees? Joe Ranni, Esq. of Ranni Law Firm PLLC answers this and the following questions: What is the main difference between them? Which is best for the employer? Is there a hiring minimum age limit for either of them? Can I hire my child as an employee or independent contractor? Is the way I pay employee taxes different between the two? Can an independent contractor become an employee? Can an employee become an independent contractor? Do you give up benefits by being an independent contractor? Can independent contractors collect unemployment? Can independent contractors bring a claim for sexual harassment or only company employees? Do I need legal counsel if an independent contractor claims to be an employee to the IRS?