Differentiate between consultant and employee. Who will receive a good pay. How to calculate professional tax for Consultant. How to calculate tax for an employee. Who is receiving a salary of Rs. 20000/-

Employees normally have benefits, health insurance, life insurance, disability, vacation pay and the such. An employee has a company that pays 1/2 of the social security tax and pays unemployment taxes.

So as a consultant you have to pay all of your own taxes, have to buy your own insurance and have no benefits. But then you have a lot of tax deductions available as a consultant.