must comply with an employer's instructions about the work.
receives training from or at the direction of the employer.
provides services that are integrated into the business.
provides services that must be rendered personally.
hires, supervises, and pays assistants for the employer. (An
independent contractor usually determines whether to hire assistants and if so, whom to
hire.)
has a continuing relationship with the employer.
must follow set hours of work.
works full-time for an employer.
does the work on the employer's premises.
must work in a sequence set by the employer.
must submit regular reports to the employer. (If a contract
between the employer and an independent contractor specifies that the job must be
completed to the satisfaction of the customer, the employer may avoid the need for reports
from the independent contractor. Reports are usually indications of employee
status.)
receives payments of regular amounts at set intervals. (If
the worker is an independent contractor, the contract should call for payment by the job.
Payments by the hour, week, or month usually indicates an employer-employee
relationship. Additionally, fringe benefits are generally paid by employers to
employees.)
receives payments for business or traveling expenses.
relies on the employer to furnish tools and materials.
lacks a major investment in facilities used to perform the
service. (An independent contractor usually has a significant investment in his or
her own business.)
cannot make a profit or suffer a loss from the services.
(An indication of independent contractor status is being subject to real risk of economic
loss. Thus, independent contractors usually have control over the economic results,
and contractually agree to bear the risk of loss.)
works for one employer at a time.
does not offer services to the general public. (Any
requirement of exclusivity detracts from the argument that the worker is an independent
contractor. Advertising by the individual that his or her services are available to
the general public is an indication of independent contractor status.)
can be fired by the employer. (The general common-law rule
is that only employees may be terminated immediately; independent contractors cannot be
fired as long as they live up to their contractual obligations.)
may quit work at any time without incurring liability.
(According to the IRS, only employees may terminate without incurring any liability;
independent contractors are contractually bound to complete the specific job.)
