Who is an Independent Contractor?

Who is an Independent Contractor?

To obtain the pamphlet from the IRS that contains all of the specifics, call 1-800-829-3676 or visit http://www.irs.gov/pub/irs-pdf/p1779.pdf.  A summary of the information contained in the publication is there are three categories that are considered when determining if the relationship is that of employer/employee or business/independent contractor. 

Behavioral Control – extensive instruction on "how" to the work versus "what" work needs to be done including the amount of training received to accomplish the work.

Financial Control – some of the criteria in this category include: significant investment, lack of expense reimbursement, the opportunity to earn a profit or incur a loss.

Relationship of the Parties –the perception of the parties is addressed here including lack of employee benefits and existence of written contracts.

More information on this topic

Form 1099