Which of the following best defines an employee?

• A. A self-employed person providing services under contract
• B. A worker employed by an organization or company
• C. A person who runs their own business
• D. An independent contractor providing services to multiple clients

Answer: (B)

Understanding whether someone is an employee comes down to the nature of the relationship with the organization. An employee is hired by a company and works under a contract of employment, usually under the organization’s control—receiving direction, using the employer’s tools, following the employer’s processes, and being integrated into the workplace. There is a mutual obligation: the employer provides work and payment, and the worker agrees to perform the work. This setup typically comes with regular pay, possible benefits, and tax handling through the employer.

The other descriptions describe different arrangements. A self-employed person or someone who runs their own business operates as their own boss, often providing services to multiple clients, controlling their hours, invoicing for work, and handling their own taxes. An independent contractor who serves several clients works under a contract for service rather than a contract of employment and also maintains independence from any single employer.

So, the description that matches being employed by an organization or company best defines an employee.