No. 15 Does the business pay travel expenses?As an employee, the company would be responsible to either provide the employee with a travel advance or reimburse the employee for expenses incurred while traveling for business purposes. However, as an independent contract the cost of travel expenses would be built into the contracted price. It is important to pay the employee for travel expenses because it is considering work time not personal time.

No. 18 Can the worker realize a profit or loss?An employee is paid an agreed-upon wage and is paid weekly, biweekly or monthly. The wage can fluctuate based on hours worked. The independent contractor estimates and quotes his price. If the final cost is over the estimate, he is in a loss situation. If he estimates high, and the final cost is lower than the estimate he gets the profit. The company is responsible to pay the final agreed upon price.

No. 10 Is the worker required to do things in a certain way? An employee probably has some flexibility in the way they accomplish their job tasks but it must adhere to company policies and standards. An independent contractor, on the other hand, sets his own standards and follows business practices set by industry standards and codes.

4. Must the services be rendered personally by the worker? An employee would be the only one providing the services to the company. The independent contractor could hire sub-contractors to get the work done and the company would not be concerned as long as the job was done according to the written contract.

Colleen