Method of payment. Employees are paid by increments in time, by the hour, day, etc. Independent contractors are paid a set fee for the job. Payment of business or traveling expenses. Firms which pay for workers directly, costs of doing business, expense accounts, etc. are employers of employees.
Independent contractors are responsible for their own costs of doing business.
Furnishing tools and materials. Like training, an independent contractor should have all the equipment necessary to perform the job without having to use those of the firm. This includes supplies, tools, and other equipment. Realization of profit or loss. An independent contractor sustains a loss or gains a profit on every job.