- If the construction company employer utilizes only one independent contractor to always perform the same type of work, he may be considered an employee.
- If the independent contractor works for no other company, he may be considered an employee.
- If the construction company controls when, where and how work is performed, the worker will be considered an employee.
- If the worker has no exposure to financial loss on a job, he will be considered an employee.
- If the worker maintains a separate business address, he will most likely be considered an independent contractor
- If the worker has a federal identification number for income tax purposes, and does not use a social security number, he is more likely to be considered an independent contractor
- The location of where the work is performed
- The lack of a formal hiring agreement
- The licensing, or lack thereof, the worker
- The frequency or timing of payment
- The work to be performed will be completed by a definite date, but the independent contractor will determine the days and hours actually worked
- The independent contractor will furnish his/her own materials, equipment and tools
- The independent contractor will complete the agreed to work for the set price, regardless of the number of hours/days needed to complete the job and regardless of whether or not the independent contractor makes a profit.
- The independent contractor will maintain workers’ compensation insurance covering all of the independent contractor’s employees until the agreed work is completed to the satisfaction of the construction company
- The independent contractor will determine the means and methods of how the work is performed
- The independent contractor is free to work for other employers before, during and after the work for the construction company
Author Rebecca Shafer, JD, President of Amaxx Risk Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker, and publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality, and manufacturing. She is the author of the #1 selling book on cost containment, Workers Compensation Management Program: Reduce Costs 20% to 50%. Contact: RShafer@ReduceYourWorkersComp.com.
Editor Michael B. Stack, CPA, Director of Operations, Amaxx Risk Solutions, Inc. is an expert in employer communication systems and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. He is a writer, speaker, and website publisher. www.reduceyourworkerscomp.com. Contact: firstname.lastname@example.org.
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