Difference Between Employee and Ic
Differences Between Employees and Independent Contractors (Source: IRS)
By way of providing more clarity to this topic, following is the 20 factor test as presented by R. C. Chip Goldsberry, Assistant Director of Personnel Services for Compensation and Information Systems at Purdue University, in the August, 1992 edition of the NACUBO Business Officer, a journal published by the National Association of College and University Business Officers (NACUBO): 1. an employee is required to comply with instructions about when, where, and how to work. The employer's right to instruct, not the exercise of that right, is the key. Instruction may be oral or in written procedures or manuals. an independent contractor is hired to provide goods or services and is not instructed in great detail about how to provide the goods or services. 2. an employee is usually trained by one of the institution's experienced employees. Training indicates that the employer wants the services performed in a certain manner. an independent contractor ordinarily uses his or her own methods, is hired for his or her expertise, and receives no training from the institution that purchases services. 3. an employee's services are usually integrated into business operations, generally showing that direction and control are being exercised. Integration of services into the business operation occurs when the success or continuation of a business depends to an appreciable degree on the performance of services that are difficult to separate from the business operation. an independent contractor's services can usually stand alone and are not integrated into business operations. 4. an employee is hired to render services personally. If the employer is interested in who does the job as well as in getting the job done, it indicates that the employer is concerned about the methods used as well as the result of services performed. an independent contractor is hired to provide a service and often the employer does not
By way of providing more clarity to this topic, following is the 20 factor test as presented by R. C. Chip Goldsberry, Assistant Director of Personnel Services for Compensation and Information Systems at Purdue University, in the August, 1992 edition of the NACUBO Business Officer, a journal published by the National Association of College and University Business Officers (NACUBO): 1. an employee is required to comply with instructions about when, where, and how to work. The employer's right to instruct, not the exercise of that right, is the key. Instruction may be oral or in written procedures or manuals. an independent contractor is hired to provide goods or services and is not instructed in great detail about how to provide the goods or services. 2. an employee is usually trained by one of the institution's experienced employees. Training indicates that the employer wants the services performed in a certain manner. an independent contractor ordinarily uses his or her own methods, is hired for his or her expertise, and receives no training from the institution that purchases services. 3. an employee's services are usually integrated into business operations, generally showing that direction and control are being exercised. Integration of services into the business operation occurs when the success or continuation of a business depends to an appreciable degree on the performance of services that are difficult to separate from the business operation. an independent contractor's services can usually stand alone and are not integrated into business operations. 4. an employee is hired to render services personally. If the employer is interested in who does the job as well as in getting the job done, it indicates that the employer is concerned about the methods used as well as the result of services performed. an independent contractor is hired to provide a service and often the employer does not