Mississippi State University
Employee vs. Independent Contractor
Twenty Common-Law Factors of Employee Status

1. Must comply with an employer's instructions about the work.
2. Received training from or at the direction of the employer.
3. Provides services that are integrated into the business.
4. Provides services that must be rendered personally.
5. Hires, supervises and pays assistants who are employees of the employer.  (An independent contractor determines whether to hire his/her own assistants and if so, whom to hire.)
6. Has a continuing relationship with the employer.
7. Must follow set hours of work.
8. Works full-time for an employer.
9. Does the work on the employer's premises.
10. Must work in a sequence set by the employer.
11. Must submit regular reports to the employer.  (Reports usually indicate employee status.)
12. Receives payments of regular amounts at set intervals.  (For an independent contractor, the payment is usually by the job.)
13. Receives payments for business or traveling expenses.
14. Relies on the employer to furnish tools and materials.
15. Lacks a major investment in facilities used to perform the service.
16. Cannot make a profit or suffer a loss from the services.
17. Works for one employer at a time.
18. Does not offer services to the general public.
19. Can be fired by the employer.  (Generally, independent contractors cannot be fired as long as they live up to their contractual obligations.)
20. May quit work at any time without incurring liability.  (According to the IRS, independent contractors are contractually bound to complete the specific job.)