INDEPENDENT CONTRACTORS
proper proof of insurance coverage for independent contractors isn ’ t maintained , the payroll for these individuals could be added to the workers ’ compensation policy of the business owner for the previous year , resulting in an audit bill .
If you would like to discuss your level of protection when hiring an independent contractor or further discuss IRS criteria to figure out if you are dealing with an independent contractor or an employee , please contact Nicole Garza our Business Risk Advisor at 219.850.1110 or ngarza @ genins . com . +
Nicole Garza was born and raised in Crown Point , Indiana graduating from Crown Point High School and earning a Bachelor ’ s Degree from Purdue University Northwest ’ s Hospitality and Tourism Management Program . She now resides in Hobart where she is a member of the Hobart Chamber of Commerce , Purdue Northwest Alumni Association Board , and the Merrillville Rotary Club . In her free time Nicole enjoys the beach , time spent with friends , and volunteering .
ATTORNEYS AT LAW
James W . Kaminski William S . Kaminski David P . Jones Matthew J . Hagenow Kristina J . Jacobucci
Nicholas T . Otis Anthony G . Novak Alyssa N . Speichert
Martin W . Kus Senior Counsel
916 Lincolnway • La Porte , IN 46350 • P : ( 219 ) 362-1577 MICHIGAN CITY P : ( 219 ) 879-6300
IRS FACTORS USED TO DETERMINE CONTROL
These factors are used by the IRS to determine control :
1 . The individual can earn a profit or suffer a loss from doing the task ( indicative of independent contractor ).
2 . The individual is instructed where to work .
3 . The individual offers services to the general public ( indicative of independent contractor ).
4 . The individual can be fired by the hired company .
5 . The individual provides his or her own tools , materials or supplies needed to complete the work ( indicative of independent contractor ).
6 . The individual is paid by the hour or paid by the job completed ( employees are generally paid by the hour whereas independent contractors are paid by the job ).
7 . The individual does services for more than one contracted company at a time ( indicative of independent contractor ).
8 . The individual has a continuous long-term relationship with the company ( indicative of employee status ).
9 . The individual has an investment in office space and equipment needed to complete tasks ( indicative of independent contractor ).
10 . The individual pays for travel and business expenses ( indicative of independent contractor ).
11 . The individual can quit without being liable for breaking a contract ( indicative of employee status ).
12 . The individual receives specific instructions from the company ( indicative of employee status ).
13 . The individual is told exactly how to perform his or her job ( indicative of employee status ).
14 . The individual receives training for the job he / she is to perform ( indicative of employee status ).
15 . The individual performs the services him- or herself .
16 . The individual hires his / her own assistant and pays that person ’ s salary ( indicative of independent contractor ).
17 . The individual sets his or her working hours ( indicative of independent contractor ).
18 . The individual gives the company reports on his or her progress on work completed
19 . The individual works full-time for the company ( indicative of employee status ).
20 . The individual ’ s work is considered part of the core operations of the company ’ s daily operations ( indicative of employee status ).
Other government agencies such as the States ’ Unemployment Compensation Board , Workers ’ Compensation Insurance Agency , Tax Department and Department of Labor have ways of determining .
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