While the IRS tends to stick to the above 20 factors, the courts and other agencies may use some of the following additional criteria on which to base their decision. A. Skill required. Workers whose jobs require a low level of skill are considered employees. Workers whose jobs require high skill to perform their duties are usually considered Independent Contractor. B. Worker Benefits Employees receive benefits, such as medical insurance coverage, sick leave, paid vacation and pension funds.
Independent Contractors receive no benefits.
C. Tax treatment Employees have federal and state payroll taxes withheld by their employer. Independent Contractors pay their own taxes. The intended relationship between worker and employer helps to establish the relationship itself. If, in the industry it is standard for workers to be either employees or independent contractor, it is easier to substantiate such a category. F. Economic dependence Employees are economically dependent upon the employer.