This is the second part of a two-part series.  Read When Is An Employee Not An An Employee? Part 1 here.


Generally, the following are characteristics of an employee rather then an Independent Contractor:

  • The worker is required to comply with instructions about when, where, and how the work is done.
  • The worker is provided training by the employer.
  • The success or continuation of the business significantly depends on the work being performed by the worker.
  • The employer hires, supervises or pays the assistants to the worker.
  • The worker has a permanent or indefinite work relationship with the employer.
  • The employer sets the worker’s hours.
  • The worker is paid by the hour, day or week rather than by the job.
  • The worker’s business and travel expenses are reimbursed by the employer.
  • The worker performs the work only for the one employer and not to the general public.
  • The worker does not supply any required materials.
  • The worker does not have an investment in the tools or facilities used to perform the work.
  • The worker cannot generate a profit or loss from the work being provided.
  • The worker can terminate the relationship with the employer at any time even if the work is not completed.   
  • The worker is required to perform all of the work on the employer’s premises.

The above are simply guidelines to help you make the determination of when a worker is an employee; however, even if some of these characteristics exist, the worker may still be classified as an Independent Contractor.   In many cases, it will be the degree to which these characteristics exist that will be the deciding factors.    Each situation must be judged on its own unique circumstances.

If you would like more information, you should consult with an accountant or tax attorney; or, check the relevant IRS publications.