Let’s be clear: Independent Contractor or Employee?

One of the projects on which I will be working (TBA soon) may help to address some of the employment issues that I see within food systems, especially markets. Here is one of those issues, how markets employ their market staff.
This is from the IRS website:

“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.”
The decision is based on three areas:

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?

Independent Contractor (Self-Employed) or Employee?.


1 Comment

Comments are closed.