What does an employee mean in accounting?
Definition:
For income tax purposes, an employee is to be distinguished from an independent contractor. This is important, for the withholding of income taxes on wages applies only to employees. Also, employee status will affect the manner and extent of some deductions and credits. The regulations state that an employee is one who is subject to the will and control of the employer not only as to what shall be done but also as to how it shall be done.
