How to Avoid Incorrectly Treating a Worker as an Independent Contractor – Part II.

In yesterday’s blog I decribed the factors which often demonstrate a worker is an employee. If you answer "Yes" to the following questions you probably have an independent contractor.

1. Does the worker furnish significant tools, materials and equipment?
2. Does the worker have a significant investment in facilities?
3. Can the worker realize a profit or loss as a result of his or her services?
4. Does the worker provide services for more than one firm at a time?
5. Does the worker make his or her services available to the general public?

A human resource audit may help you avoid incorrectly treating a worker as an independent contractor.