IRS 20 Factor

Overview:

 

No.

Issue

Employee

Independent Contractor

1 Instructions Required to comply with employer's instructions as to how to do the job. Follows own instructions.
2 Training Required to be trained by employer on how to do the job. Does not require training from employer.
3 Integration Services are fully integrated into employer's business, which is significantly dependent upon them. Services are not integrated into employer's business.
4 Personal Required to perform services personally. Not required to perform services personally.
5 Assistants Assistants are hired, supervised and paid by employer. Generally hires own assistants, required only to attain a particular result.
6 Continuity A continuing economic relationship which may include work at recurring but irregular intervals. No assumption of continuing relationship.
7 Hours of Work Required to perform work within set hours of work specified by employer. Free to establish own hours of work.
8 Time Required Usually devoted full-time to employer's business, may be restricted from performing work for others. May work at any time and for whom he chooses.
9 Work Location Performs work on employer's premises. (Importance dependent on nature of work and requirements, if any, of employer.) Work may be performed anywhere, often at worker's office or location.
10 Sequence of Work Follows order or sequence of work set by employer. Free to accomplish work in any sequence.
11 Reports Generally makes regular or periodic, either oral or written, to employer. Not necessarily required to submit regular reports.
12 Payment Is generally paid by time, i.e. hour, week or month. Is generally paid by result, i.e. completion of project or straight commission.
13 Expenses Is generally reimbursed for business-related expenses, implying right of regulation and direction by employer. Generally, covers own expenses and expenses may be included in total payment.
14 Tools and Materials Tools and materials needed for job are provided by employer. Uses his own tools and materials to accomplish work.
15 Facility Investment Generally has no investment in facilities required to accomplish work, indicating dependence on employer's facilities. Has an investment in facilities, such as an office rented from third party.
16 Profit or Loss Cannot realize a profit or loss on his services. Has an exposure to economic gain or loss on accomplishment of work.
17 Simultaneous Work Performs work under a single financial arrangement. Performs work simultaneously for multiple, unrelated persons or entities.
18 General Public Does not make services available to general public. Makes services available to general public on regular basis.
19 Discharge Employer can fire and thereby control nature and pace of work through threat of firing. Cannot be discharged so long as result is satisfactory.
20 Termination Can quit at any time without liability. Can terminate only with risk of breach of contract liability.

Details

Article ID: 53365
Created
Fri 5/4/18 1:34 PM
Modified
Fri 1/26/24 9:02 AM