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INDEPENDENT CONTRACTOR
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EMPLOYEE
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Free from direction and control
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Means and manner of work are controlled by employer
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Does tasks in own way
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Does tasks the employer's way
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Has necessary skills and training to complete job
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Trained by employer to perform job
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Has an assumed business name
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Works under the employer's assumed business name
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Has a business location
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Works at employer's business location
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Performs services for multiple customers
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Works for one employer, may serve that employer's customers
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Sets own hours
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Works hours set by employer
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Determines own price for contracted services
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Accepts wage, salary, or commission determined by the employer
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Not eligible for employee benefits
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May be covered by minimum wage, overtime, safety, unemployment, and workers' comp
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Directly affected by business profit or loss
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Not directly affected by employer's profit or loss
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Owns equipment and tools used to complete job
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Employer provides and controls equipment and tools
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Purchases materials and supplies needed to do job
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Employer purchases materials and supplies
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Personally liable for errors and/or accidents
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Employer liable for employee errors and/or accidents
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Files self-employment taxes.
Receives a Form 1099-MISC
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Does not file self-employment taxes.
Receives a Form W-2 from employer
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Has right to hire and fire workers
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Is hired and/or fired by employer
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Must legally complete each contract
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May quit working for an employer at any time
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