Are you an independent contractor? Amazingly, this is a harder question to answer than many would think. The rules surrounding whether a worker is classified as an employee or independent contractor are complicated.

First question… What is an independent contractor?
An individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. An employee is a worker who is told how, what, and the results of what should be done.

The level of control over what, when, and how work is completed is what distinguishes a contractor from an employee.

Below are some of the characteristics of a contractor who is working independently:

Set Your Own Work Hours – Set your own hours and work how and when you want to. Paid by the project (not on an hourly basis)

Provide Your Own Equipment or Supplies – Supply your own tools, equipment and supplies (i.e. car, ladder, laptop, or tools)

Temporary Relationship – Independent contractors work on a temporary, project, basis.

Invoices – You should receive invoices for work completed and payments made out to the business name (not the individual)

Multiple Jobs – Independent contractors typically work with multiple clients at the same time.

Contracted Work – You should expect to work under an “Independent Contractor Agreement.” This will identify the terms of the relationship, payment, and expected goals.

Supplemental Services – Contractors will provide supplemental services for a company but will not typically perform integral or executive roles.

If you are attempting to identify whether a worker is an independent contractor or an employee and have some additional questions, then we can help.