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EMPLOYEE
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INDEPENDENT CONTRACTOR
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Directed and controlled by employer
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Independent
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Does tasks in the manner the employer requests
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Does tasks in his or her own way
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Does not have a financial investment in the work
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Assumes the costs associated with doing the work
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Employer provides tools, equipment, and skills training
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Comes to the job with all necessary tools, equipment, and skills
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The individual works under your business license
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The individual obtains his or her own business license
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Often receives benefits beyond payment for service (retirement and health plans)
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Receives only payment for service
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Receives a net check. Employer withholds income tax and FICA taxes.
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Receives a gross amount check. Pays his or her own taxes.
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Works at employer’s place of business
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Works at his or her own office or home
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Works the hours set by the employer
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Sets his or her own hours
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Works for one employer at a time
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Provides services to multiple entities
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Does not advertise
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Has customers as a result of being known by the public as a business
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Eligible for workers compensation benefits
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Not covered by workers compensation
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Has some rights prior to termination
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No termination rights unless contracted
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Covered by minimum wage and overtime rules
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Paid as contracted no overtime
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Protected by safety and anti-discrimination rules
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No such protection
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May join or form a union
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No right to union representation
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