Factors used to Determine Independent Contractor Status
Factors Used to Determine Independent contractor status:
1. Control Over Work: One big thing is how much the company controls the worker’s tasks. Independent contractors usually decide how and when to do their job without much interference from the company. Employees, on the other hand, often have their work closely supervised.
2. Financial Arrangement: How the worker gets paid matters too. Independent contractors often negotiate a set fee for their project, while employees usually get a regular paycheck. Contractors might also cover their own expenses, unlike employees whose expenses are often covered by the company.
3. Nature of Relationship: The type of relationship between the worker and the company is also important. Contractors are typically hired for specific projects or tasks and may work for multiple companies at once. Employees usually have a more ongoing relationship with just one employer.
4. Specialized Skills and Investment: Lastly, the worker’s skills and investment in their business can affect their status. Contractors often have unique skills or training and might have invested in tools or training to do their job well. This shows they’re running their own business rather than just being an employee.