A contractor signs a W-9 form and does not receive any benefits from the hiring company. A temporary employee still receives benefits for the duration of their employment. A contractor may receive work in sparser amounts, but they may remain with a company longer than a temporary employee.
A contractor is someone who gets paid for turning up to do a duty. Fo example a yoga teacher, taking a class. Or a Tupperware rep working a party. A temporary employee is a person that works for a company for a limited period of time, for example for a length of a project.
Employees are hired by a company that provides a W-2's and pays/remits state/federal taxes, SSI, etc. Contractors receive 1099's and are responsible for paying their own taxes, SSI, etc.
