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Employee versus Independent Contractor Determination
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Analysis of facts related to control
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Payer
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Worker
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N/A
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Who is responsible for planning the work to be done?
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q
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q
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q
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Who decides how much the worker is to be paid?
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q
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q
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q
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Who decides on the time frames?
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q
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q
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q
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Who decides how the work is to be done?
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q
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q
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q
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Who decides on the hours of work?
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q
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q
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q
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Who decides on the location?
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q
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q
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q
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Who assigns the individual tasks?
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q
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q
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q
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Who supervises the task?
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q
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q
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q
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Who sets the standard to be met?
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q
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q
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q
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-Quality?
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q
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q
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q
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-Volume?
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q
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q
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q
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-Time Frame?
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q
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q
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q
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Who decides whether work must be redone?
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q
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q
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q
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-Who covers the related costs?
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q
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q
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q
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Who is responsible for training?
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q
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q
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q
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-Who covers the related costs?
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q
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q
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q
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Who decides on the territory to be covered?
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q
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q
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q
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Who decides on the periodic activity reporting?
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q
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q
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q
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Who decides if the work is to be done by the worker himself?
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q
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q
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q
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Who hires helpers?
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q
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q
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q
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If your answer "Payer" to most of these questions, it means that the payer exercises control over the worker. An employer-employee relationship probably exists. Otherwise, it indicates that a business relationship may exist.
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Analysis of facts related to ownership of tools
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Payer
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Worker
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N/A
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Who supplies the heavy equipment or covers its rental costs?
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q
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q
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q
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Who supplies the specialized equipment or covers its rental costs?
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q
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q
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q
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Who covers equipment maintenance costs?
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q
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q
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q
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Who supplies the large tools or covers their rental costs?
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q
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q
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q
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Who supplies the specialized tools or covers their rental costs?
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q
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q
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q
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Who supplies the materials?
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q
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q
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q
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Who has invested in the equipment and tools?
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q
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q
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q
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If you answer "payer" to most of these questions, it means that by supplying the tolls and equipment, the payer exercises control over the worker. There is no risk of loss for the worker. An employer-employee relationship probably exists. Otherwise, it indicates that a business relationship may exist.
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Analysis of facts related to chance of profit/risk of loss
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Payer
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Worker
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N/A
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Who covers the cost of damage to equipment or materials?
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q
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q
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q
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Who covers the costs of liability insurance?
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q
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q
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q
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Who covers office expenses?
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q
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q
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q
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Who covers rental costs?
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q
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q
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q
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Who covers delivery and shipping costs?
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q
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q
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q
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Who covers costs related to bad debts?
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q
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q
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q
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Who assumes responsibility for ensuring that guarantees relating to materials are honoured?
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q
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q
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q
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Who assumes responsibility for the performances of the work?
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q
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q
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q
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Who guarantees the quality of work?
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q
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q
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q
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Who covers the costs incurred by the worker in carrying out the work?
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q
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q
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q
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Who covers the costs of the worker's benefits (paid vacation, sick leave, life insurance, life insurance premiums, etc.)?
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q
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q
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q
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If you answer "Payer" to most of these questions, it means that there is little involvement on the part of the worker, and that his income does not depend on the results achieved at the end of the contract. An employer-employee relationship probably exists. Otherwise, it indicates that a business relationship may exist.
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Integration
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Payer
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Worker
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N/A
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What was the answer to most of the questions related to control factor?
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q
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q
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q
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What was the answer to most of the questions related to the ownership of tools/factor?
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q
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q
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q
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What was the answer to most of the questions related to the chances of profit/risk of loss factor?
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q
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q
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q
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If you answer "Worker" to these questions, it indicates that the worker integrates the payer's activity to his own activities. A business relationship probably exists. Otherwise, it is reasonable to conclude that an employer-employee relationship exists.
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