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Employees typically work under a contract of service, whereas selfemployed individuals typically work under a contract for services. This compensation can vary and is usually delivered to them after services are rendered.What is a contract of service? A services agreement is a written contract between a service provider and a client. A contract may be for a total amount. You're considered a contractor when a client hires you for a specific project, or on a freelance basis. However, whether these people are independent contractors or employees depends on the facts in each case. Certain professional claimants normally work on a contract basis. A contractor is someone who completes a job for a specified period of time. The difference between an independent contractor and an employee is not always clear cut.
