Sunday, January 20, 2008

Independent Contractor vs. Employee

TWENTY FACTORS

These factors are used to determine if an individual is classified as an Independent Contractor:
  • Is the worker required to follow INSTRUCTIONS?
  • Does the firm provide training to accomplish the work?
  • Is the worker REGULARLY employed at the firm?
  • Is the work performed personally by the worker?
  • Does the firm DIRECTLY pay the worker's assistants?
  • Is there a continuing ongoing work relationship?
  • Are there a set number of work HOURS?
  • Is the worker engaged full time by the firm?
  • Does the worker work on the firm's premises?
  • Does the worker work according to a SCHEDULE set by the firm?
  • Is the worker required to submit regular reports to the firm?
  • Is the worker paid based on time rather than by project?
  • Is the worker REIMBURSED for his/her expenses?
  • Does the firm furnish the tools and/or materials?
  • Does the worker have a vested INTEREST in performing the services?
  • Can the worker realize a profit or suffer a loss?
  • Does the worker work for more than one firm at a time?
  • Does the worker make his services available to the general public?
  • Does the firm have the right to DISCHARGE the worker without incurring a legal liability for non-performance under the contract?
  • Does the worker have the right to TERMINATE the relationship without incurring a legal liability for non-performance under the contract?

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