Control

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Begin by looking at the terms and conditions of employment as they relate to control, as this is the most important factor.

Generally, in an employer-employee relationship, the employer controls, directly or not, the way the work is done and the work methods used. The employer assigns specific tasks that define the real framework within which the work is to be done.

If the employer does not directly control the worker's activities, but has the right to do so, the notion of control still exists.

The degree of control exercised by the employer may vary depending on the type of work to be done and the employee's experience and skill.

Generally, the payer exercises control if he has the right to hire or fire, determines the wage or salary to be paid, and decides on the time, place, and manner in which the work is to be done.

Specifically, the payer may control:

The fact that the payer controls the worker's activities does not imply that the payer must know how to do everything that the worker is required to do.

In short, the payer exercises control if he has the right to decide where, when, and how the work will be done.

In a business relationship, however, the payer does not usually exercise control over the worker's activities. The worker can decide how the work will be performed.



The following questions will help you determine whether the payer does exercise control over the worker. If it is obvious that the payer controls the worker's activities, it is highly indicative of an employer-employee relationship.
Analysis of facts related to control
Payer
Worker
N/A
Who is responsible for planning the work to be done?
Who decides how and how much the worker is to be paid?
Who decides on the time frames?
Who decides how the work is to be done?
Who decides on the hours of work?
Who decides on the work location?
Who assigns the individual tasks?
Who supervises the tasks?
Who sets the standards to be met?
  • Quality?
  • Volume?
  • Time frame?
Who decides whether work must be redone?
  • Who covers the related costs?
Who is responsible for training?
  • Who covers the related costs?
Who decides on the territory to be covered?
Who decides on periodic activity reporting?
Who decides if the work is to be done by the worker himself?
Who hires helpers?
Total
Payer:
Total
Worker:
Total
N/A:

If you answer "Payer" to most of these questions, it means that the payer exercises control over the worker. An employer-employee relationship probably exists. Otherwise, it indicates that a business relationship may exist.

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