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    Independent Contractor Qualification

    Uploaded by

    Sherwin Steffin
    This short set of 20 questions is what is used by the IRS and other agencies to determine whether you are properly classified as an Independent Contractor, rather than a regular employee.

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    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd

    Independent Contractor Qualification

    Uploaded by

    Sherwin Steffin
    3K views2 pages
    This short set of 20 questions is what is used by the IRS and other agencies to determine whether you are properly classified as an Independent Contractor, rather than a regular employee.

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    © Attribution Non-Commercial (BY-NC)

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    DOC, PDF, TXT or read online from Scribd

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    This short set of 20 questions is what is used by the IRS and other agencies to determine whether you are properly classified as an Independent Contractor, rather than a regular employee.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    3K views2 pages

    Independent Contractor Qualification

    Uploaded by

    Sherwin Steffin
    This short set of 20 questions is what is used by the IRS and other agencies to determine whether you are properly classified as an Independent Contractor, rather than a regular employee.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    Ind epen dent Contract or Q ua li fic ation

    Purpose:
    The following questions are for your use in determining whether you are correctly
    being paid as an Independent Contractor, or whether you should be treated as a
    regular taxable employee. While it may appear that you will make more money
    under this arrangement, you should be aware of the following:
    1. The recipient of your services will make no tax or benefit deductions from your
    paycheck. Payments will be made based upon a schedule established between
    you and your client (“The EMPLOYER”), which may or may not follow its regular
    payment plan to its employees.
    2. Instead of receiving a from W-2 for your earnings, you will instead be issued a
    Form 1099. Your employer has no responsibility for making any tax deductions.
    3. You are not entitled to any benefits offered by The EMPLOYER to its employees.
    You are operating your own business, and as such are responsible for all
    expenses which you incur during the course of executing this work.
    4. Specifically you should be aware that The EMPLOYER has no liability for
    Workmen’s Compensation or any disability you may suffer as a result of
    performance of work for the company.
    5. While you will be receiving a larger take-home check, since no deductions are
    being taken by the employer, you should be aware that your tax obligations as
    an Independent Contractor will be greater than they would be as a regular
    employee.
    Put an X in the column that correctly answers each question. In the event that any
    Question, other than Questions 16 is answered “Yes,” or that item 16 is answered
    “No,” you have failed to qualify as an Independent contractor.
    No Yes Questions
    1. Are you required to comply with instructions about when,
    where and how the work is done?
    2. Are you provided training that would enable you to perform
    your work for the recipient of your services, in a particular
    method or manner?
    3. Are the services provided you an integral part of the business'
    operations?
    4. Must the services be rendered personally by you?
    5. Does the recipient of your services hire, supervise, or pay
    assistants to help the you perform your work?
    6. Is there a continuing relationship between you and the person
    or organization, for whom the services are performed?
    7. Does the recipient of the services set the work schedule?
    8. Are you required to devote your full time to the person or
    company you perform services for?
    9. Is the work performed at the place of business of the company
    or at specific places set by the company?
    10. Does the recipient of the services direct the sequence in
    which the work must be done?
    11. Are regular oral or written reports required to be submitted by
    the worker?
    12. Is the method of payment hourly, weekly, monthly (as
    opposed to commission or by the job?)
    13. Are business and/or traveling expenses reimbursed?
    14. Does the company furnish tools and materials used by the
    worker?
    15. Have you failed to invest in equipment or facilities used to
    provide the services?
    16. Do the terms and conditions of your work put you in a
    position of realizing either a profit or loss on the work?
    17. Does the worker perform services exclusively for the company
    rather than working for a number of companies at the same
    time?
    18. Do you, in fact, make your services regularly available to the
    general public?
    19. Are you subject to dismissal for reasons other than non-
    performance of the contract specifications?
    20. Can you terminate your relationship to the recipient without
    incurring a liability for failure to complete the job?

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