Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

Determine Your Independent Contractor Status

Posted by Mark On September 3rd

Need help determining your independent contractor status?

First step is to review the rules set our by the Internal Revenue Service, see website.

Independent Contractor Statusd

This is the first installment of
Independent Contractor Taxes…Know Your Options.

It can be downloaded from our eBook library.

This is the third installment of 16 Year-End Tax Tips for 2013 which can also be downloaded from our eBook library. – See more at:

The Internal Revenue service has boiled down the old 20 factor test to three categories:

  • Behavioral Test – Focuses on whether the company controls or has the right to control when, where, and how the job is completed.
  • Financial Test – Who controls the economics of the workers job? Is the individual reimbursed for travel? Who provides the job related tools or supplies? Is the individual paid by the hour or a single payment after completion of the job? Can/does the individual work for more than one company, with the ability to make a profit or suffer a loss?
  • Type of Relationship Test – How do each perceive the business relationship? Is the worker rendering services indefinitely or on a project to project basis? A written contract to be an independent contractor is not the end all be all, the IRS does not follow these agreements if the above tests prove differently.

Review all six things you need to do in our new eBook: Independent Contractor Taxes…Know Your Options. Download it for free today!

If you have questions about your independent contractor status, feel free to contact Makara and Associates online, or call our:

  • Naples accountants at (239) 384-9688
  • Fort Myers accountants at (239) 768-5008

Join Makara & Associates on:


This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

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