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YOUR TAXES : PART FOUR: SPECIAL SITUATIONS : How to tell who's in charge

March 15, 1987

The best way to decide if you are an employee of a company or self-employed as an independent contractor is to answer the following questions. If you generally answer "yes," the Internal Revenue Service says you are an employee, not self-employed.

1. Does the worker receive instruction about when, where and how to work?

2. Does the company using the services of a worker provide the worker with training, either through formal classes or on-the-job programs?

3. Are the worker's services substantially integrated into the company's general business operations?

4. Must the services offered by a worker be performed by that worker?

5. Does the company--not the worker--hire, fire, supervise and pay other workers?

6. Is the relationship of the company and worker a continuing one, either on a regular or irregular basis?

7. Does the company set the hours for work?

8. Is the worker required to devote full time to the company's business?

9. Does the worker have to do the job on company premises or where the company says it must be performed?

10. Does the company decide the order and sequence in which the work is to be performed?

11. Does the company require regular or written reports from the worker?

12. Is the worker paid periodically rather than for each job, and is the worker guaranteed a minimum salary?

13. Is the company responsible for paying business and travel expenses?

14. Does the company furnish the tools and materials needed for the job?

15. Has the company--not the worker--made a significant financial investment in the facilities, such as office furniture or equipment, needed to perform the job?

16. Is the worker's service offered only to the company, not to the general public?

Compiled from IRS regulations by Amtec, a supplier of high-tech temporary employees.

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