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17 “Tests” to Decide: Employee or Independent Contractor
“I don't have any employees; they are all independent contractors."
“What makes them independent contractors," the agent asks.
“I pay them using a 1099."
OK, so most readers know that the reality of an “independent contractor" is not dependent on how the person is being paid – even if they are paid in mustard. The reality of an independent contractor relationship is based on the facts of the relationship.
What follows are 17 “tests" to aide in deciding if the relationship is truly that of an independent contractor or an employee. If more than one or two “tests" are failed, the person is likely an employee based on the facts. And when employee status exists, workers' compensation must be provided, and a premium must be paid.
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The most important aspect of making a sale is also a major weakness of every salesperson:
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AGENCY ERRORS LEAD TO UNINSURED UMBRELLA LAWSUIT
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