What are some of the differences that determine whether a person is treated as an employee or contractor?
The IRS “Circular E, Employers Tax Guide” provides the IRS definition of an employee. The State Department of Labor, Employment Security Division also provides information and assistance in making this determination. There are some general rules that will help correctly identify whether a person is an employee or a contractor. If the employer has control over the worker’s job, pay, timeline, and duties performed, they are considered an employee. A contractor, however, performs work that is not in the regular course of business for the employer and the employer does not have direct control over the contractor’s daily activity. Contractors are generally hired to perform a certain task for the employer. Once that task has been performed there are no longer any ties between the contractor and the employer. Also, the contractor may work for several employers at the same time. When in doubt, check with the IRS and/or state DOL. A worker can either be a contractor or an employee. If a worker
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