Work at home moms as Independent Contractors

Work at home and are usually considered self-employed for legal and tax purposes

Receive a 1099 at the end of the year from employer

Are responsible for taking out their own taxes

Responsible for their own health insurance and other benefits

May enjoy many tax benefits, including possibly paying less tax and having more tax deductions than employees have

Work at home generally enjoying more freedom, with the employer only interested in the end result of the work, not how the work is performed

Often paid based on actual work completed

Usually free to work at home for more than one company at a time

Work at home independently, often free to hire other people to work at home with them

May involve less of an application process.

Employer usually requires an Independent Contractor's Agreement.

Work at home moms as employees

Work at home and are considered employees for tax purposes

Receives a W2 form at the end of the year.

Employer takes out and pays taxes

Some employers pay for some or all of health insurance costs (the trend is that employers are paying less and less of skyrocketing insurance premiums).

Has minimal tax benefits.

Work at home with more freedom than office-based workers but generally have less freedom than independent contractors; employer able to control virtually every aspect of the work even though you work at home.

Paid in a variety of different ways.

Some employers discourage their employees from working for more than company at a time, even when they work at home

Work at home as dictated by employer, usually not free to hire

Usually involves a very rigorous application process and screening.

Some employers have special contracts for their work at home and some don't.