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