Independent Contractor Status

Do you know your independent contractor status? Amazingly, this is a harder question to answer than many would think. The rules surrounding whether a worker is classified as an employee or maintains an independent contractor status are complicated.

First question… What is an independent contractor?
An individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. An employee is a worker who is told how, what, and the results of what should be done.

The level of control over what, when, and how work is completed is what distinguishes a contractor from an employee.

Independent Contractor Status

Below are some of the characteristics of an independent contractor…

Set Your Own Work Hours
Set your own hours and work how and when you want to. Paid by the project (not on an hourly basis).

Provide Your Own Equipment or Supplies
Supply your own tools, equipment and supplies (i.e. car, ladder, laptop, or tools)

Multiple Jobs
Independent contractors typically work with multiple clients at the same time.

Temporary Relationship
Independent contractors work on a temporary, project, basis.

You should receive invoices for work completed and payments made out to the business name (not the individual)

Contracted Work
You should expect to work under an “Independent Contractor Agreement.” This will identify the terms of the relationship, payment, and expected goals.

Supplemental Services
Contractors will provide supplemental services for a company but will not typically perform integral or executive roles.

If you are attempting to identify whether a worker should have an independent contractor status or should be considered an employee and have some additional questions about the process, then we can help.

The attorneys with Beyer, Pongratz, and Rosen have vast experience with every aspect of estate planning, probate, and business structuring. We are here to help! Give us a call to get started 916-250-1511 or contact us online to set up a FREE consultation. We look forward to working with you.

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