Classification As Independent Contractor Or Employee For Technical Or: Fill & Download for Free

The IRS publishes several articles on identifying the difference between a contractor and an employee; that they receive 1099 payments has little to do with that classification:The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.…You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done). This applies even if you are given freedom of action. What matters is that the employer has the legal right to control the details of how the services are performed. [1]and…Facts that provide evidence of the degree of control and independence fall into three categories:Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another.The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination. [2]The only thing that a 1099 does is that it requires that the contractor pay self-employment tax on their earnings; technically speaking.Footnotes[1] Independent Contractor Defined[2] Independent Contractor Self Employed or Employee

Understand that, with worker’s compensation, the classification of a worker as an employee or independent contractor is based on the workers comp law -NOT your own bookkeeping, labor contract, or anything else. If the worker’s comp LAW says you are an employee, then you are, for purposes of workers compensation.SO, what does the law actually say? That depends on the state where the law would apply to the worker.But in general, the “controlling test” is the master-servant relationship, a concept deeply rooted in the law over long history. A “master-servant” relationship exists whenever the master has the right to control the servant in the performance of his work, and the manner in which the work is to be done. It is not the EXERCISE of that right which is controlling, but rather the existence of that right, whether exercised, or not.Put in more simple terms, the technical classification of the worker means nothing. Rather, if the worker is “like” an employee, then he or she IS an employee.Thus it is that many workers who are hired under contract as “independent contractors,” are actually employees within the meaning of workers compensation law. And thus it is that many so-called independent contractors have filed for benefits, and received them.So, what are you (the writer) REALLY in the eyes of the workers comp law? Basically, if the employer has the right to tell you how to do your job, then you are probably an employee within the meaning of the law -and you can file for benefits. Be aware, of course, that this may prompt your employer (your “customer”) to cancel a contract with you, because your claim goes on his record and may also inspire the insurance company to reclassify a lot of “subs” as employees.There are certain industries where this “independent contractor” status looms large, and the restaurant business is one of them. Some restaurants classify the wait staff as IC’s and even go so far as to establish bookkeeping systems which record sales not to the customer, but rather to the server, giving the appearance that the waiters are running their own little businesses, using the restaurant as their distributor or wholesaler. When I was in the insurance business, I warned my restaurant customers against this practice, but a few tried it anyway. It never worked.So, the answer: If you really ARE an independent contractor as defined under the workers comp law, then, NO you are not entitled to benefits. But if that law would see you as an employee within the meaning of the law (no matter what you or your employer say about your status) then you could file for and receive benefits.Please be aware that your designation will depend on the workers compensation laws in the state where you are working, and that the laws of said state may vary from what I have outlined, above.What we all long for is justice. But what we get is the law. That said, know (or be properly advised on) the law.Hope that helps.

No.I had not seen the term "Independent Worker" until this question was asked.Furthermore, I believe that (at least from the U.S. perspective) the assumed definition conflates terms from different realms that should not be conflated:"Independent contractor" and "employee" are legal classifications."W-2 contract employee" is an employee; the "contract" portion apparently suggests that the employer has made the employee available to a third party."Freelancer" suggests independent contractor but is not a legal term."Consultant" suggests a profession but does not specify a legal status."Temp worker" is ambiguous as to whether the individual is an employee or an independent contractor.So, given that the term, as defined in the question, has so many potentially different meanings, I would be surprised if anyone was able to "understand what it means".