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.