The extent of control which (by agreement between the employer and the worker) the business may exercise over the details of the work
If the employer retains the right to dictate how the work should be done, the worker is an employee. If the employer decides what work the
worker will do and how the worker will do it, then the worker is an employee. When an employer hires an independent contractor, the employer is normally
interested only in the end result, not the details of how the contractor performs the work.
An independent contractor is not subject to the will and control of the employer.
The employer can decide what results are expected from the independent contractor, but cannot control the methods used to accomplish those results. This factor is the most
important of the 10 determining factors.
Whether the one employed is engaged in a distinct occupation or business
A person engaged in a distinct occupation or business is more likely to be an independent contractor if the occupation or business is separate
and distinct from the employer's business.
Whether the work done in a certain locality is usually done under the direction of the employer or by a specialist without supervision
If the work is usually done in that locality under the direction of an employer, then the worker is more likely to be an employee. If the work
in that locality is usually done by a specialist without supervision, then the worker is more likely to be an independent contractor.
The skill required in the particular occupation
The greater the skill required for the occupation, the more likely the worker is an independent contractor. A contract for labor only will normally be considered a
contract of employment while the hiring of a licensed professional is more likely to be considered the hiring of an independent contractor.
Whether the employer or the worker supplies the instrumentalities (for example: equipment, vehicle, materials), tools, and the place of work for the person doing the
work
Independent contractors are generally expected to provide or purchase everything they need to do the job. Employees are not expected to provide their own workplace,
materials, tools, and supplies, or to otherwise invest their own money in the business.
The length of time the person is employed
The more long-term, continuous, and exclusive the relationship is, the more likely it is to be employment.
The method of payment, whether by the time or by the job
Independent contractors generally perform their work one job at a time and are paid by the job. An employee is paid for his time.
Whether the work is a part of the regular business of the employer
If the service provided by the worker is an integral part of the service the employer provides to the public, the worker is more likely to be an employee. If
certain services are so essential to a business that it will succeed or fail based upon how well those services are performed, the business will often want to
exercise enough control over the services to ensure they are good. That can make a business the employer of such workers.
Whether the parties believe they are creating the relationship of employer and employee
If there is a written agreement between the parties describing the relationship it should be honored unless other provisions of the agreement, or the actual
practice of the parties, show that the agreement is not a valid description of the working relationship. If the actual practice of the parties shows an employee
relationship, an agreement which describes the worker as an independent contractor will be disregarded. How the worker is treated, not the language of a written
agreement or the issuance of a 1099, determines whether the worker is an employee or an independent contractor.
Whether the hiring party is or is not a business
If the hiring party is a business, it is more likely that the worker is an employee. If the hiring party is an individual, the worker is more likely to be an
independent contractor.
