Common Law Test





Independent Contractors IRS

Common Law Test

  • Common Law Test
  • can earn a profit or suffer a loss from the activity
  • is told where to work by the hiring firm
  • offers his or her services to the general public
  • can be fired by the hiring firm
  • furnishes the tools and materials needed to do the work
  • is paid by the job or by the hour
  • works for more than one firm at a time
  • has a continuing relationship with the hiring firm
  • invests in equipment and facilities
  • pays his or her own business and traveling expenses
  • has the right to quit without incurring liability
  • receives instructions from the hiring firm
  • is told in what sequence or order to work by the hiring firm
  • receives training from the hiring firm
  • performs the services personally
  • hires and pays assistants
  • sets his or her own working hours
  • works full-time for the hiring firm
  • provides regular oral or written progress reports to the hiring firm, or
  • provides services that are an integral part of the hiring firm's day-to-day operations.




Common Law Test
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