The Difference is More Important Now than Ever
By Frank Harty and Deb Hulett
Essentially, the key to distinguishing an employee and independent contractor is "control." The key is the hiring party's right to control the "manner and means" by which the product is accomplished. The courts, the IRS and treatises have distilled the factors that are relevant to control. See Revenue Ruling 87-41, 1987-1 Cumulative Bulletin 296; Restatement (Second) of Agency § 220(2) (1958); Nationwide Mutual Insurance Company v. Darden, 503 U.S. 318 (1992).
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