The key differences between being classified as an independent contractor and an employee in the USA include tax treatment, control over work, benefits eligibility, and legal obligations. Independent contractors typically have more control over how they perform tasks, handle their taxes, aren’t eligible for benefits, and are responsible for their own expenses. Employees, on the other hand, often receive benefits, have taxes withheld, and follow a set work structure defined by the employer. Classification impacts both the worker’s rights and the employer’s responsibilities.