Employee VS Independent Contractor
How Do I Determine if A Worker Is an Employee or an Independent Contractor and What Difference Does it Make?
A number of factors are important in determining if a worker is an employee or an independent contractor. In general, however, the more control you as the boss exercise over the worker, the more likely the worker is to be an employee. IRS publication 15a can help you with this determination. If the worker is an employee, you must withhold payroll taxes.
Some of the factors that are important to this determination are:
* Whether the worker works hours that are set by you
* Whether you supply the materials the worker uses or the worker brings them to the job
* The length of time the worker is expected to work for you
* Whether the worker performs the same services for others
* Whether you provide the worker with benefits
* How much guidance you give the worker and the degree of control you exercise over the worker
There are many other factors that go into such a determination. If in doubt, please consult with us regarding your specific situation.