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.
Form W1099
Form 1099 Filing Requirements-What you need to Know. CLICK HERE to review the requirements and print out.