National Payroll |
Corporation |
Big company services - small company attention! (703) 922-5882 |
Independent Contractor Test Do you think your workers are independent contractors and that you do not need payroll? Try this test: Behavioral Control Factors Answer Yes or No (No supports Independent Contractor status) Do you issue detailed instructions regarding how the job gets done? Do you require the worker to obtain approval before taking actions related to his job? Do you require the worker to participate in training to carry out his job? Do you require the worker to wear a company uniform? Financial Control Factors Answer Yes or No (Yes supports Independent Contractor status) Does the worker have a significant investment in your business? Do you reimburse the worker a significant amount of his expenses? Is the worker generally free to seek other jobs? Does the worker maintain an office away from your business from which he holds himself out to the public for jobs? Do you pay the worker a flat fee rather than an hourly rate or salary? If you pay commissions, does the worker bear significant unreimbursed costs in relation to the work performed? Does the worker have an opportunity for profit or loss under the contract arrangement? Relationship of the Parties Answer Yes or No (Yes supports Independent Contractor status) Do you have an employment contract that states the worker is to be treated as an independent contractor? Do you not provide the worker benefits such as vacation days, sick leave or health insurance? Do you have the right to refuse payment for unsatisfactory work? Did you hire the worker for a specific project or period rather than an indefinite time? Is the service performed by the worker incidental to, and not a vital part of, your regular business activities? |
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National Payroll Corporation 6118 Franconia Road, Suite 203 Alexandria VA 22310 (703) 922-5882 FAX (703) 922-8225 |
