20FactorTestforIndependentContractors.pdf

The document delves into the differentiation between an employee and an independent contractor, emphasizing factors like behavioral and financial control, as well as the nature of the worker-company relationship. It discusses how the IRS assesses worker classification based on payment structure, benefits, continuity of engagement, and the worker's profit-making potential. Furthermore, it elucidates the reasonable basis test as a safeguard for designating workers as independent contractors and lays out conditions that bolster this classification. An example of an Independent Contractor Agreement is provided, outlining terms related to work, compensation, tax obligations, contract termination, confidentiality, conflicts of interest, and intellectual property rights.