Have you ever wondered what the difference is between an employee and an independent contractor? Every situation is different, but here is a list of tips and hints.
• A worker required to comply with others' instructions on when, where, and how to work is usually an employee.
• Training a worker indicates that services are to be performed in a particular manner/method.
• Integration of a worker's services into the business operations indicates control.
• Services to be rendered personally indicates control.
• The right to hire, supervise, and pay assistants shows control.
• A continuing relationship indicates control.
• Set hours for the work indicates control.
• Full time work indicates control. An independent contractor is free to work when and for whom he/she chooses.
• Work performed on a business' s premises suggests control.
• A requirement that the worker submit regular or written reports indicates control.
• Payment by the hour, week or month indicates an employment relationship.
• Payment/reimbursement of business expenses indicates an employment relationship.
• Furnishing of tools and equipment indicates an employment relationship.
• Investment by the worker in facilities indicates an independent contractor.
• Ability to realize profit or loss from services indicates an independent contractor.
• Working for more than one firm or business at a time indicates an independent contractor.
• Services available to the general public on a regular and consistent basis indicates an independent contractor.
• The right to discharge a worker indicates an employment relationship.
• The worker's right to terminate the relationship without liability indicates an employment relationship.
If you have any questions, please contact Lardiere McNair.
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