What is the difference between employees, vendors, and contractors?

Vendors are the people or organizations who sell products or services to people or companies. Contractors are people who are assigned to a specific task, usually for short periods of time. Contractors generally don’t get the same benefits or perks that a full-time employee might. An employee is an individual who is hired and assigned to a specific task usually for a long period of time and is generally eligible for benefits, like health insurance, retirement, commuter benefits, disability, etc.