employee

One who is employed under a contract of service to work for some form of payment. Payment may include salary, commission, and piece rates. Distinguishing between those who are employed and those who are self-employed is important, in some instances, for tax purposes. An employee/employer relationship is suggested in the following situations: there is a written agreement to that effect; the employer directs the method of work; the employer provides tools and equipment; and the employee is bound to the employer and cannot offer their services elsewhere.