If you are legitimately trying to decide whether to classify someone as an independent contractor or employee, consider his relationship to your business. The IRS considers evidence pertaining to your business' control over that worker. Evidence of the degree of control or independence falls into three categories. An employee is generally subject to the business's instructions about when, where, and how to work. An employee tends to be trained in a particular manner, while independent contractors use their own methods.
Independent contractors are more likely to have unreimbursed expenses than employees are.
An independent contractor is usually paid by the job. An independent contractor can make a profit or loss. Written contracts describing the relationship the parties intended to create. Whether the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay. The permanency of the relationship.