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Independent or Not?

Under a House-passed bill, the IRS's 20-factor test for classifying workers as 
independent contractors would be replaced with a three-part test. Here are 
examples of conditions that might be met in each area:

CONTRACTOR'S ECONOMIC INDEPENDENCE
-- Invests in assets or training;
-- Incurs significant unreimbursed expenses;
-- Is paid by commission; or
-- Works for a set time or to complete a set task

CONTRACTOR'S WORKPLACE INDEPENDENCE
-- Has a principal place of business;
-- Works at more than one client's site;
-- Pays rent for use of client's facilities; or
-- Is free to seek work from others--and has

A WRITTEN CONTRACT
-- Between the contractor and the client

DATA: SENATE SMALL BUSINESS COMMITTEE


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Updated Aug. 21, 1997 by bwwebmaster
Copyright 1997, Bloomberg L.P.
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