From Shaw & Associates —
The following three categories of facts that provide evidence of the degree of control and independence should be considered when making the determination:
- Behavioral- does the business control or have the right to control what the worker does and how the worker does the job?
- Financial- are the business aspects of the worker’s job controlled by the business owner? These include items like how the worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.
- Type of Relationship- are there written contracts or employee type benefits (vacation pay, insurance, retirement plan, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
Business owners must weigh all these factors and evaluate each situation separately as factors that are relevant in one situation may not be relevant in other situations.
Read the full story at Independent Contractor or Employee?
- Don’t Misclassify Workers as Independent Contractors – The National Law Review (natlawreview.com)
- Employee vs Independent Contractor – Part 1 (schwartzcpas.wordpress.com)
- The Tax Risks of Misclassifying Employees – The National Law Review (natlawreview.com)