Employer/Contractor Differences Page

Common Law Test For Determing Whether a Worker is an Employee is shown below

Employee

  • Required to comply with employer’s instructions about when, where and how to work.
  • Works exclusively for the employer.
  • Hired by the employer.
  • Subject to dismissal; can quit without liability.
  • Has a continuing relationship with the employer.
  • Work done personally.
  • Performs services under the company’s name.
  • Paid salary: reimbursed for expenses; participates in company’s fringe benifits programs.
  • Furnished tools, equipment, materials, and training.
  • If an outside salesperson: Company provides leads, sets terms and conditions of the sale, assigns a territory, and controls the sales process.

Form W9

Should you determine that you are an Independent Contractor, you MUST complete Form W-9. CLICK HERE to display and print the form.

Independent Contractor

  • Sets own hours; determines own sequence of work.
  • Can work for multiple employers; services available to the public.
  • Is self-employed
  • A contract governs how the relationship can be served.
  • Works by the job.
  • Permitted to employ assistants.
  • Performs services under the worker’s business name.
  • Payment by the job; opportunity for profit and loss.
  • Furnishes own tools, equipment, and training; substantial investment by worker.
  • Controls the sales process and terms.

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Form W1099

Form 1099 Filing Requirements-What you need to Know. CLICK HERE to review the requirements and print out.