Independent Contractor Versus Employee
Sometimes, it is not a straightforward matter to determine who is an independent contractor and who should be classified as an employee. To make a determination, the IRS in the USA advises taxpayers to look at three aspects of the employment arrangement: financial control, behavioral control, and relationship between the parties. While some independent contractors may work for a number of different organizations throughout the year, there are also many who retain independent contractor status even though they work for the same organization for the entire year.
Generally speaking, independent contractors retain control over their schedule and number of hours worked, jobs accepted, and performance of their job. In addition, they may have a major investment in equipment, furnish all their own supplies, provide their own insurance, repairs, and all other expenses related to their business. They may also perform a special service that is not in the normal course of business of the employer. This contrasts with the situation for regular employees, who usually work at the schedule required by the employer and whose performance is directly supervised by the employer. However many companies (particularly in the freight transport industry) specify the contractor's schedule, require purchase of vehicles from the company and prohibit work for other companies.
Examples of occupations where independent contractor arrangements are typical:
- Accountant
- Adjunct professor
- Auctioneer
- Author
- Barber or hair stylist
- Bookkeeper
- Boxer
- Courier
- Court reporter
- Dry cleaner
- Engineer
- Entertainer
- Gardener
- General contractor
- General practitioner
- Hair stylist
- IT professional
- Interpreter or translator
- Lawn care worker
- Lawyer
- Market stall
- Mason
- Massage therapist
- Medical doctor
- Nurse
- Newspaper carrier
- Personal trainer
- Swimming pool service technician
- Private investigator
- Private military company
- Radio presenter (in radio jargon, referred to as a "swing jock")
- Security guard
- Professional wrestler
- Professional athlete
- Real estate agent
- Sales representative
- Stockbroker
- Talent agent
- Tattoo artist
- Taxi driver or limousine driver
- Telephone and live chat psychic
- Tradesman
- Truck driver/operator
- Tutor
Read more about this topic: Independent Contractor
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