Weekly HR News - Employee vs. Ind. Contractor (Relationship Factor)

Employee vs. Independent Contractor

Weekly HR News – Part 4 of 4 (Relationship Factor)

As stated in the previous articles, the determination as to whether a worker is considered an employee or independent contractor is based on three main groups which are:

In the previous articles we looked at behavioral control and financial control and this week we will cover the final part of the test, which is the relationship factor. Facts that indicate the parties’ relationship include:

To assist employers in making the correct decision when it comes to whether or not a worker is an employee or an independent contractor, see IRS Publication 15-A which offers detailed information and examples of whether a worker should be classified as an employee or an independent contractor. http://www.irs.gov/pub/irs-pdf/p15a.pdf.  The IRS can also assist in making a determination of independent contractor status if the city needs assistance, through the use of Form SS-8, which is prepared by the city, as the employer, and sent to the IRS.  The form can be found at http://www.irs.gov/pub/irs-pdf/fss8.pdf.

KLC also has an easy to use checklist that can assist in making this determination.  For a copy of the checklist, or more information on this or any other personnel related matters contact Andrea Shindlebower.

Do you have an employment law or HR topic that you would like addressed in this article?  If so send an email to ashindlebower@klc.org.