Unfortunately, there is no easy answer to this question. It is based on a range of factors and determined by different sources depending on what you are doing and who is raising the question. For example, the Internal Revenue Service has a list of factors it considers which you can find here. If you are in Oklahoma, it is important to know what Oklahoma authorities say matters.
According to the Oklahoma Worker’s Compensation Commission, these are the relevant factors to consider in determining whether a worker is an independent contractor:
- The nature of the contract shows that the worker is independent from the contractor. For example, the contract may contain an agreement that the contracting party is an independent contractor.
- The degree of control exercised by the principal (employer) over the work. The greater the degree of control exercised by the principal, the greater the likelihood is that the worker is an employee, rather than an independent contractor.
- Whether the worker is engaged in a distinct occupation or business for others. For example, the worker is a painter who paints houses for multiple employers.
- The kind of occupation with reference to whether, in the locality, the work is usually done under the direction of the employer or by a specialist without supervision;
- Whether the occupation requires special skills, license, education, or training; which tends to indicate that the worker is a contractor.
- The worker supplies all or most of the materials that he or she needs to perform the job. If this is the case, it tends to indicate that the worker is an independent contractor.
- The length of the job, i.e., whether the job is a one-time job or a job that will be performed on a regular basis.
- The worker is paid as a separate contractor, e.g., an invoice is provided to the worker for his/her services; the worker is paid by the job; the worker files a federal income tax return for his/her business; the worker is provided with an IRS Form 1099 from the principal.
- Whether or not the work is a part of the regular business of the employer;
- Whether or not the parties believe they are creating the relationship of master and servant;
- The right of either party to terminate the relationship without liability.
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