People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. However, current LCSC employees cannot be considered independent contractors and must be paid through the State payroll system.
|Works set hours||Sets own hours|
|An ongoing relationship||Relationship lasts a limited time|
|Paid by hour, week, or month||Paid by the job performed|
|Reimbursed for business expenses||Responsible for incidental expenses|
|Facilities and tools furnished by employer||Has own facilities and tools|
|Works for one firm||May work for several firms at once|
|Must render services personally||Can subcontract services to another|
|Regular reports are required||Not required to account for actions|
|Does not solicit for work||Solicits for work through advertising|
|Can be discharged||Cannot be terminated except for breach of contract|
|Can quit||Must complete contract or be responsible for failure to do so|
|No risk of loss or opportunity for profit||Has risk of loss and opportunity for profits|
To pay an independent contractor for services, complete:
The Contractor will need to complete:
After each calendar year, if the independent contractor has performed services in excess of $600, they will receive a Form 1099 from Human Resource Services in January or February.