Final answer:
To determine independent contractor status, tests for Behavioral Control, Financial Control, and the Relationship of the Parties are critical. No single factor is determinative alone; all aspects of the relationship are examined.
Step-by-step explanation:
To determine if someone is an independent contractor, there are several critical tests to consider, but three commonly used ones are:
- Behavioral Control: This looks at whether the company has the right to direct or control how the work is done through instructions, training, or other means.
- Financial Control: This test examines whether the company has the right to control the economic aspects of the worker's job. This includes how the worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.
- Relationship of the Parties: This considers how the worker and business perceive their interaction with each other. This includes written contracts describing the relationship the parties intended, whether the business provides the worker with employee-type benefits, the permanency of the relationship, and the extent to which services performed by the worker are a key aspect of the company's regular business.
It's important to note that no single factor determines an independent contractor status, and all aspects of the relationship must be considered.