Understanding Your Role
Employment vs. Contractor Work
RHM may work with individuals in different ways depending on ministry need, role structure, supervision requirements, state-specific review, and applicable law.
Why Classification Matters
Correct Classification Protects Everyone
Correct classification protects the worker, the ministry, and the people being served. It affects taxes, benefits, scheduling, supervision, insurance, legal responsibilities, and ministry operations.
RHM does not classify someone as a contractor simply because that arrangement is preferred. The actual working relationship must be reviewed against applicable standards.
Employees
Employees generally work under the direction and control of an organization. The organization may set schedule, duties, work methods, and ongoing expectations.
- •Org directs how, when, and where work is done
- •Payroll taxes withheld by employer
- •Schedule typically assigned or controlled by org
- •Tools and systems provided by org
- •May be eligible for benefits
- •Subject to direct management oversight
- •Ongoing, integrated staff relationship
Independent Contractors
Independent contractors are generally self-employed individuals providing services under a contract. They may have more control over how they provide services.
- •Contractor controls their methods and approach
- •Responsible for own self-employment taxes
- •Contractor controls availability and schedule
- •Contractor may provide their own tools
- •Generally not eligible for benefits
- •Ministry care oversight — not staff management
- •May serve other organizations
- •Written service agreement governs relationship
At a Glance
Key Differences
| Area | Employee | Contractor |
|---|---|---|
| Control | Org directs how, when, where | Contractor controls methods |
| Taxes | Payroll taxes withheld | Self-employment taxes |
| Schedule | Org assigns or controls | Contractor controls availability |
| Benefits | May be eligible | Usually not eligible |
| Supervision | Direct management oversight | Care oversight without staff management |
| Business Risk | Usually limited | Contractor carries risk |
| Relationship | Ongoing, integrated staff | Written service agreement |
RHM Review: RHM reviews each role carefully. Contractor approval may depend on written agreements, ministry fit, training, supervision, documentation, state-specific review, and legal or insurance considerations.
Educational Disclaimer: This page is general educational information and is not legal, tax, financial, or professional advice. Potential contractors are encouraged to seek their own legal, tax, or professional guidance regarding independent contractor status and classification.
