No interim reports - Independent contractors are hired for a final result and, therefore, should not be asked for progress or interim reports. Factor 12 Payment Timing - Independent contractors are paid by the job, not by time. Payment by the job can include periodic payments based on a percentage of job completed. Payment can be based on the number of hours needed to do the job times a fixed hourly rate. However, this should be determined before the job commences.
Independent contractors are generally responsible for their incidental expenses.
Factor 15 Own tools - Independent contractors normally furnish their own tools. The independent contractor's investment in his trade must be real, essential, and adequate. Factor 18 Possible profit or loss - Independent contractors should be able to make a profit or loss. Employees can't suffer a loss. Factor 19 Limited right to discharge - Independent contractors can't be fired as long as they produce a result which meets the contract specifications.