Employee or Independent Contractor?

Employee or Independent Contractor? IRS Considerations
FACTORS INDICATING CONTROL	EMPLOYEE	INDEPENDENT CONTRACTOR
Note: These factors are only possible indicators of a worker’s status. Each case must be determined on its own facts, based on all the information.
Is the worker required to comply with employer instructions about when, where and how work is to be performed?	Yes	No

Is the worker required to undergo training?	Yes	No

Does the worker hire, supervise and pay others to perform work for which he or she is responsible?	No	Yes

Must the worker’s job be performed during certain set hours?	Yes	No

Must the worker devote full time to the job?	Yes	No

Must the work be performed on the employer’s property?	Yes	No

Must tasks be performed in a certain order set by the employer?	Yes	No

Is the individual required to submit regular written or oral reports to the employer?	Yes	No

Is payment by the hour, week or month?	Yes	No

Is payment in a lump sum?	No	Yes

Are the worker’s business and travel expenses paid by the employer?	Yes	No

Does the employer furnish the tools and materials required for the job?	Yes	No

Does the worker rent his or her own office or working space?	No	Yes

Will the worker realize a profit or loss as a result of his or her services?	No	Yes

Does the individual work for more than one firm at a time?	No	Yes

Does the worker make his or her services available to the general public?	No	Yes

Does the employer have the right to fire the worker?	Yes	No

Does the worker have the right to quit the job at any time, whether or not a particular task is complete?	Yes	No

Source: Modern Real Estate Practice, 15th Edition, by Galaty, Aliaway and Kyle, Real Estate Educaaon Company, Chicago, 2000

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Employee or Independent Contractor?