An employee is more likely an Employee than an Independent Contractor if the worker:
1. Is required to comply with the employer’s instructions about the work.
2. Receives training from the employer. 3. Provides services that are integrated into the business. 4. Provides services that must be rendered personally. 5. Hires, supervises and pays assistants for the employer. 6. Has a continuing relationship with the employer. 7. Follows set hours of work. 8. Works full-time for the employer. 9. Works on the employer’s premises. 10. Does the work in a sequence set by the employer. 11. Submits regular reports to the employer. 12. Receives payments of regular amounts at set intervals. 13. Receives payments for business or traveling expenses. 14. Relies on the employer to furnish tools and materials. 15. Lacks a major investment in facilities used to perform the service. 16. Cannot make a profit or suffer a loss from the services. 17. Works for one employer at a time. 18. Does not offer services to the general public. 19. Can be fired. 20. Can quit at any time without liability.
If, it is still unclear whether you have an employee, Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding (PDF) can be filed with the IRS. The IRS will review the facts and circumstances and officially determine the proper working status.
The big thing here is, if you are in doubt---classify them as an employee while you make further inquiries.
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