Employee Vs. Independent Contractor
According to the IRS, an employee is anyone who performs services for an employer if the employer can control what will be done and how it will be done. This was codified in revenue ruling 87-41, and is generally called "the twenty factor test". Independent contractors are defined so if the payer or employer has the right to control or direct only the result of the work done, and not the means and methods of accomplishing the result. There are also other categories such as non-employees, which include direct sellers.
Read more about this topic: Misclassification Of Employees As Independent Contractors
Famous quotes containing the word independent:
“When the object is perceived as particular and unique and not merely the member of a family, when it appears independent of any general notion and detached from the sanity of a cause, isolated and inexplicable in the light of ignorance, then and only then may it be a source of enchantment.”
—Samuel Beckett (1906–1989)