1. Worker's availability to the general public - an independent contractor makes services available to the public on a regular and consistent basis. They can demonstrate they are actively seeking and soliciting this type of work from the general public. For example, they list their expertise in directories, seek referrals, and or market their practice.

2. Risk of profit or loss ó the IRS generally regards a worker to be an independent contractor if the worker can realize a profit or suffer a loss from performing services, while a worker who cannot realize a profit or loss is generally regarded as an employee. The IRS says, for example, that if a worker is subject to a real risk of economic loss due to significant investments or a bona fide liability for expenses, such as salary payments to unrelated employees, this indicates that the worker is an independent contractor, but the mere risk that a worker will not receive payment for services, which is common to both independent contractors and employees, is not a sufficient economic risk to support treatment as an independent contractor.


***If worker cannot be justified as an independent contractor under criteria 1 and 2, no further review is needed; the worker must be paid as an employee.***




3. Personal service required - the right of an independent contractor to substitute anotherís services without the employerís knowledge shows that the employer is not requiring one individualís personal services.

4. Payment by the hour, week or month - an independent contractor is paid in a lump sum fee basis when the job is done. An invoice must be generated to substantiate the payment.

5. Employer's discharge rights - an independent contractor cannot be terminated as long as they are fulfilling the contract.

6. Worker's termination rights - an independent contractor could be held financially responsible for any loss the employer suffered because they did not fulfill their contract.

7. Continuing relationship - the relationship between an independent contractor and an employer ends when the job is done.

8. Compliance with instructions - independent contractors cannot be told when, where or how to do the job.

9. Set hours of work - the independent contractor establishes his/her own hours of work.

10. Training - independent contractors do not go through any type of instructional training period with a more experienced employee to learn how to do the job. Independent contractors specialize in the field in which you have employed them and do not need to be trained.

11. Working on the employer's premises - an independent contractor, unless the nature of the service requires, works off-premises.

12. Required work order or sequence - an independent contractor does not need to be told in what order to do the job. They have been contracted with as one that is an expert in this field and do not need to be told how to do the job.

13. Integration into business - the success or continuation of the business is not dependent on the independent contractor's performance of the service.
14. Control over hiring, supervising, and paying of assistants - an independent contractor maintains control of their assistants. The employer contacts the independent contractor if there is a problem, and the employer pays the independent contractor for the work done and then the independent contractor pays the assistants directly.

15. A full-time work requirement - an independent contractor has the availability to work for more than one client.

16. Working for more than one firm - an independent contractor has an established business in which they work for more than one firm.

17. Payment of business or travel expense - an independent contractor is responsible for his/her own business or travel expense. If paid by an employer, the employer must include in the independent contractor's 1099, unless you can verify an accountable plan.

18. Investment in facilities - if the independent contractor maintains an office on the employer's premises, he/she pays a rent or lease payment for the office space as well as overhead.

19. Furnishing of tools and materials - an independent contractor has the necessary tools and materials to do the job.

20. Required reports - an independent contractor is not required to submit oral or written reports.