The factors that determine the degree of control or independence from the IRS website are as follows:

Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

Financial: Are the business aspects of the workers job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

As a business you must weigh all these factors when determining whether a worker is an employee or independent contractor. Each worker relationship should be evaluated on a case-by-case basis. The important key is to look at the overall relationship between the business and the worker and consider the extent of control over the worker. For example, in my village we take bids (letters of interest) and hires someone to mow the lawn each summer at the village hall. This worker is considered an independent contractor for the village. They use their own equipment to cut the lawn. They choose when to cut the lawn and we sign a written contract with the worker for the summer mowing season. The worker then receives a 1099 form at the end of the year for the mowing service provided to the village. The same worker may come back the next year but has to bid again just like all interested parties.

PLEASE RESPOND TO THIS IN A DISCUSSION LIKE MANNER ON WHY YOU FOUND IT INFORMATIVE