Question

The determination of whether one is an independent contractor may include the following considerations except: a. How the person will be paid. b. The amount of control the principal has over the person. c. Whether the principal supplies the tools needed to perform the work. d. The determination of the principal.

Answer 1

Answer:

D) The determination of the principal.

Explanation:

The IRS establishes three basic principles to determine whether someone is an independent contractor or an employee:

1. Behavioral control:  an individual is classified as a worker if the company has the right to direct and control his/her work performance, how the tasks should be performed and which tools should be used ⇒ OPTION B AND C.
2. Financial control: an individual is classified as a worker if the company has the right to control his/her finances related to the work and tasks performed ⇒ OPTION A
3. Relationship: an individual is considered an employee if his/her relationship with the company is permanent, what type of contract they have, if the worker is entitled to benefits provided by the company, and if the services provided by the worker are important to the business.

The determination of the principal refers to what status does the company assign the worker, and the company is not who decides the worker's status as an employee or independent contractor.  

Answer 2

Answer:

d. The determination of the principal.

Explanation:

An independent contractor is one who is not bound by any affiliations to either a company, a country or an ideology.

He is hired to do a specific work and based on his contract, paid after, before or during the work.

The determination of the principal in no way affects his work as he isn't bound to the company as an employee and is a free agent. He is a professional who is not slack in his work and works efficiently to earn his pay