IRS Rules - Are you an employee or independent contractor
20 common law-factors to determine whether workers are employees or independent contractors
(see Internal Revenue manual, 4600 Employment Tax Procedure, Exhibit 4640-1).
Workers are generally employees if they:
- Must comply with employer's instructions about the work.
- Receive training from or at the direction of the employer.
- Provide services that are integrated into the business.
- Provide services that must be rendered personally.
- Hire, supervise, and pay assistants for the employer.
- Have a continuing working relationship with the employer.
- Must follow set hours of work.
- Work full-time for an employer.
- Do their work on the employer's premises.
- Must do their work in a sequence set by the employer.
- Must submit regular reports to the employer.
- Receive payments of regular amounts at set intervals.
- Receive payments for business and/or traveling expenses.
- Rely the employer to furnish tools and materials.
- Lack a major investment in facilities used to perform the service.
- Cannot make a profit or suffer a loss from their services.
- Work for one employer at a time.
- Do not offer their services to the general public.
- Can be fired by the employer.
- May quit work at any time without incurring liability.