See also updated views on the 20 factors.
The IRS has also focused on this as 2 factors, “control” (behavioral and financial) and “relationship”.
The importance of each factor varies depending on the occupation and facts (as stated each indicates employee unless indicated). See Rev. Rul. 87-41.
- Compliance with Instructions;
- Training (services to be performed in a particular method or manner);
- Integration of the worker’s services into the business operations;
- Services Rendered Personally – interested in the methods used to accomplish the work as well as in the results;
- Hiring, Supervising, and Paying Assistants generally shows control over the workers on the job (cf. worker to provide materials and labor pursuant to contract where responsible only for the attainment of a result, indicating independent contractor);
- Continuing Relationship (including frequently recurring although irregular intervals);
- Set Hours of Work;
- Full Time Required (impliedly restricts the worker from doing other gainful work);
- Doing Work on Employer’s Premises (suggests control, especially if the work could be done elsewhere);
- Order or Sequence Set;
- Oral or Written Reports;
- Payment by Hour, Week, Month. (payment by the job or on a straight commission indicates independent contractor);
- Payment of Business and/or Traveling Expenses;
- Furnishing of Tools and Materials;
- Significant Investment indicates independent contractor. Special scrutiny required for certain types of facilities, e.g., home offices;
- Realization of Profit or Loss. (due to risk from substantial investment or bona fide expenses, NOT just risk of not getting paid);
- Working for More than One Firm at a Time indicates independent contractor (but a person can be an employee of more than 1 persons, particularly where part of the same service arrangement);
- Making Services Available to General Public (on a regular and consistent basis) indicates independent contractor;
- Right to Discharge;
- Right to Terminate.