Identifying An Independent Contractor
The following are factors that a judge will consider to determine whether and individual is an independent contractor, and thus not an employee:
- Obtain a Federal Employer Identification Number from the Federal Internal Revenue Service(IRS) or have filed business or self-employment income tax returns with the IRS based on work or service performed the previous calendar year.
- Maintain a seperate business establishment.
- Perform work that is different than the primary work of the hiring business and perform work for other businesses.
- Operate under a specific contract, and is responsible for satisfactory performance or work and is subject to profit or loss in performing the specific work under such contract, and be in a postition to succeed or fail the business's expenses exceed income.
- Have a recurring business liabilities and obligations.
- Obtain a liability insurance policy (and if appropriate, workers' compensation and disability benefits insurance policies) under its own legal business name and Federal Employer Identification Number.
- Have its own advertising such as commercials, listings in phone book and/or business cards.
- Provide all equipment and materials necessary to fulfill the contract.
- Control the time and manner in which the work is to be done.
- The individual works under his/her own operating permit, contract or authority.
Special Note For The Trucking Industry:
To be considered an independent contractor, drivers must also be transporting goods under their own bill of lading and under their own Department of Transportation Number.