Q: What is the difference between a legitimate
independent contractor and an 'illegally misclassified' independent contractor?
The differences are not always clear, but
there are some common sense criteria that distinguish employees from legitimate
independent contractors. The IRS has a twenty factor test."
Here are the 20 factors in the simplified form:
1. Is the worker supervised?
2. Does the worker receive
training?
3. Does the worker work on a
full-time basis for one employer?
4. Does the worker work on the
employer's premises?
5. Is the worker paid a regular
paycheck - hourly, weekly, etc.
6. Does the employer pay the
worker's expenses?
7. Does the employer furnish the
worker with tools?
8. Does the employer have the
right to fire the worker?
9. Does the worker have the
right to quit?
10. Does the worker submit a
regular work report?
11. Does the worker receive a
set wage, despite the profit or loss made by the employer?
12. Is the worker told by the
employer the order or sequence of work?
13. Can the worker send someone
else to do his/her job?
14. Can the worker hire other
assistants?
15. Can the worker set his or
her own hours?
16. Does the worker work for
more than one boss?
17. Does the worker offer his or
her services out to the public?
18. If the worker does a bad
job, does this directly affect the company who has hired him?
19. Is there a significant
investment in the facilities by the worker?
20. Does the worker's
relationship with their employer end when the job finishes?