Pennsylvania Jury Instruction - 1.9.4.1 Employee Self-Employed Independent Contractor
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FAQ
Pay basis: If you pay a worker on an hourly, weekly, or monthly basis, the IRS will consider it a sign the worker is your employee. An independent is generally paid by the job, project, assignment, etc., or receives a commission or similar fee.
The law further states that independent contractor status is evidenced if the worker: (1) has a substantial investment in the business other than personal services, (2) purports to be in business for himself or herself, (3) receives compensation by project rather than by time, (4) has control over the time and place ...
California Law states that a worker may be considered an independent contractor if (1) the worker has the right to control the performance of services, (2) the result of the work is the primary factor bargained for, and not the means by which it is accomplished, (3) the worker has an independently established business, ...
Some of the key differences between an employee and an independent contractor include: Independent contractors are typically free to work when and where they choose as long as the work gets done. If your employer sets specific work hours or a specific work location, you are likely an employee.
PA requires that an independent contractor provide services that are not unique to the employer's business, sets his or her own work hours, offers his or her services to the public at large, and is employed under a contract.
The basic test for determining whether a worker is an independent contractor or an employee is whether the principal has the right to control the manner and means by which the work is performed.