Work done on premises - If the work is required to be, or is usually, performed on the premises of the business entity, it is likely that the entity exercises direction and control over the worker as an employee an independent contractor is required to fulfill the requirements of the contract but may work whenever he or she wishes to work to fulfill those requirements.ĩ.
#Subcontractor mileage reimbursement full
Full time required - An employee would usually work full-time for an employer while an independent contractor can work hours and days of his or her own choosing.Ĩ.
Set hours of work - If the business entity sets the workers’ hours of work, the worker will generally be an employee an independent contractor would set his or her own schedule.ħ. Continuing relationship - If there is a continuing relationship (even if occurring at frequent but irregular intervals it is likely that there is an employment relationship.Ħ. Hiring, supervising and paying assistants - An assistant hired, supervised, and paid by a business entity is generally an employee an independent contractor can hire, supervise and pay its own assistants under a contract that directs and controls how the assistants perform the job and that provides for the independent contractor to provide materials to the assistants.ĥ. Services rendered personally - An employee must perform the work directly for the business entity and cannot contract it out because the business entity wishes to direct and control the method and means by which the work is accomplished and the final product or service.Ĥ. Training - An employee receives initial and continuing training from the employer or the employer’s agent.Independent contractors are not trained by the business for which they provide services.ģ.
#Subcontractor mileage reimbursement how to
Instructions - An employee is required to follow instructions about when, where and how to do the work.The employer maintains control if the employer can require the instructions to be followed.Ģ. Depending on the specific facts, a particular factor may straddle one or more of the three categories. While no one category or factor is controlling, the categories are intended to provide characteristics of each individual factor. The IRS 20 factors are grouped into three general categories: (1) Behavioral Control (2) Financial Control and (3) Relationship Factors.
If, however, the person is found to be an independent contractor, then the employer pays no state unemployment taxes on the individual’s earnings and the person’s services are not covered employment. If a person performing services is an employee, then the employee’s wages are subject to state unemployment taxation and the employee may be eligible for unemployment benefits. Michigan unemployment insurance law requires the IRS 20-factor test (discussed in IRS Revenue Ruling 87-41) to determine if a person performed services as an employee or as an independent contractor.
0 kommentar(er)
