- You or your representative tells the worker where, when, and how to work.
- You train the worker.
- The business performance depends on the worker.
- The worker has a continuing relationship with the company.
- The worker's services must be personally rendered by him/her.
- You set the worker's work hours.
- The worker works on the employer's premises.
- You are paid by the hour, weeks, or month.
- You furnish tools and materials.
- You can fire the worker without violating a contract.
- The worker has a right to quit without incurring a liability.
- The worker does not offer the worker's services to the public at large.
- The worker has no opportunity for profit or loss as a result of the worker's service.
- The worker has no significant investment in the business.
- You require the to submit oral or written reports.
- The worker is a corporate officer.
- company treated in individuals consistently, as a contractor, and the
- company was in full compliance by filing all required forms such as Form 1099, and if, contractor
- company could rely on one of three basis for their practice of carrying the worker as a contractor
- Judicial precedent (A court case in the company's favor)
- Past IRS Audit (A past IRS audit determine the worker to be a contractor)
- Industry Practice (There is a long-standing recognized of treating such workers as contract)
- then, the IRS could not change the status of the worker to employee.
- Instructions
- Training
- Integration
- Service rendered personally
- Hiring, supervising, and paying assistants
- Continuing relationship
- Set hours of work
- Full-time work required
- Doing work on business owner's premises
- Accomplishing work in certain order or sequence
- Submission of oral or written reports
- Method of payment
- Payment of business or traveling expenses
- Furnishing tools and equipment
- Significant investment
- Realization of profit or loss
- Work for one entity at a time
- Offer their services to the general public
- Right to discharge
- Right to terminate
Comments