An employer, to be able to control expenses, generally retains the right to regulate and direct the worker's business activities. Furnishing of tools and materials . The fact that a business furnishes sufficient tools, materials, and other equipment tends to show the existence of an employer-employee relationship. Significant investment . On the other hand, a worker's lack of investment in facilities indicates dependence on the business for the facilities and, accordingly, indicates the existence of an employer- employee relationship.
Special scrutiny is required with respect to certain types of facilities, such as home offices.
However, some workers, e.g., freelance writers, legitimately work at home and have only a small investment in a typewriter or personal computer. Realization of profit or loss . For example, if a worker is subject to a real risk of economic loss due to significant investments or a bona fide liability for expenses, such as salary payments to unrelated employees, this factor indicates that the worker is an independent contractor. The risk that a worker will not receive payment for services, however, is common to both independent contractors and employees and thus is not a sufficient economic risk to support treatment as an independent contractor. Working for more than one business at a time .