Hello,

We are discussing the differences between a consultant, contractor and employee...Do any of you have a good summary to share to help us better understand/explain the difference?

Thanks!

The State of Texas has an employer handbook that is really good...It discusses this issue from a national perspective rather than a specific state perspective at: http://www.twc.state.tx.us/news/efte/ics_contract_labor.html

However it doesn't distinguish between an IC and a consultant.

We can always count on Uncle Same to provide us some handy info for our use.  This one highlights the employee vs IC but again does not break out "consultant"

http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

The word "consultant" is largely meaningless in the debate about employee vs. contractor.  I know of at least one large company that officially uses the word "consultant" to describe any person doing exempt level "managerial" work but has no staff.  I also know consultants who work on a business to business relationship with companies and is, quite clearly, a contractor.  In the end, you are either issuing a w-2 or a 1099 and a consultant could receive either.

I was, at one time, working as a freelance HR consultant.  I offered people 3 options.  1) pay a large fee up front (to cover all my insurance costs), 2) hire me through a staffing agency (high per hour cost but offsets my liability), 3) hire me on a temporary basis (lowest cost for them, lowest liability for me).  I have done many gigs as a consultant as a temporary employee directly hired by the company, filling out all their paperwork, etc.