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A Manager's Guide to Working with Independent Contractors

What is an Independent Contractor?
An independent contractor is an individual who provides services to an employer and is paid for those services directly through the accounts payable system. People working through temporary agencies or corporate vendors are not considered independent contractors. PRI’s employees satisfy this condition.

How does the IRS see it?
The IRS generally assumes workers are employees unless companies can prove
they are not.

The IRS has published a list of factors to review when determining whether someone is an employee or an independent contractor. As you review these factors, remember that all of them must be considered to create an overall picture of the relationship between the hiring employer and each worker.

According to the IRS, independent contractors have the following attributes. They Must...

receive no detailed instructions need no training set their own work hours are not in a continuous relationship with the employer hire and control their own assistants pursue other gainful work· control job location determine order of work· provide no regular reports are not paid a regular amount at stated intervals work for multiple employers· pay their own business expenses provide their own equipment· have significant investment in their own businesses offer services to the general public· bear a risk of profit or loss cannot be terminated except pursuant to their own contract