By Work-at-Home.org

What makes a work at opportunity an employer-employee relationship and in what situations is a work at home opportunity an independent contractor arrangement?

A work at home position will be more likely to be classified as an independent contractor position if:

1. The worker may have unreimbursed business expenses from the work at home job

2. The employer does not control how work is done, but rather only the end result that is delivered to the employer.

3. The Employer does not provide training to the work at home employee or contractor.

4. The person who works at home provides his/her own assets or property for use while performing his/her work at home job.

5. The risk of whether the work at home opportunity is independent... whether the worker can realize a profit or loss, hire others, control how work is done, and/or provide the same service to other employers.

6. There is a Work at home Contractors or other written Agreement governing the relationship.

7. The employer does not treat the contractor the same way it treats other non-contractor employees, such as by providing the same benefits and rules.

8. The work at home position is more like an individual project or contract position rather than a regular, permanent job.

The fact that a work at home worker uses his/her own property to do the work, utilizes his/her own methods for doing the work and works independently at home are all key considerations, in addition to many others, when making a determination concerning whether a work at home job is an independent contractor position or regular employee position.

More information concerning work at home employees and independent contractors is available from the Internal Revenue Service, irs.gov/taxtopics/tc762.html and Publication 15-A at IRS.gov

Work at home financial considerations

Work at home and IRS Classifications of Employment

Work at home classifications: Differences between contractor and employees