Employee

Independent Contractor

Required to comply with employer's instructions about when, where and how to work

Sets own hours; determines own sequence of work

Works exclusively for the employer

Can work for multiple employers; services available to the public

Hired by the employer

Is self-employed

Subject to dismissal; can quit without liability

A contract governs how the relationship can be severed

Has a continuing relationship with the employer.

Works by the job.

Work done personally

Permitted to employ assistants

Performs services under the company's name

Performs services under the worker's business name or personal name

Paid a salary; reimbursed for expenses; participates in company's fringe benefits programs

Payment by the job; opportunity for profit and loss

Furnished tools, equipment, materials and training

Furnishes own tools, equipment and training; substantial investment by worker

Salesperson: Company provides leads, sets terms and conditions of the sale, assigns territory, and controls the sales process

Salesperson: The worker controls the sales process and terms.