What is an indicator that a worker may be classified as an employee rather than an independent contractor?

When considering the classification of a worker as an employee versus an independent contractor, one important indicator is the method of compensation. When a worker is paid based on the hours worked, this aligns more closely with the characteristics typical of an employer-employee relationship. Employees often receive hourly wages or salaries, indicating a level of control that the employer has over how the work is performed and the time it is expected to be done.

In contrast, independent contractors typically are compensated based on the project or the deliverables they provide, indicating less control from the business over how and when the work is performed. This distinction is critical in tax classification and can impact various factors, including benefits, taxes, and legal responsibilities.

The other choices relate to aspects of independence that are more aligned with an independent contractor's work style. For instance, providing their own support services typically suggests that the worker operates independently. Making services available to others also indicates a level of autonomy consistent with independent contractors. Receiving job skills from family does not provide sufficient context to determine the worker's classification and can apply to both employees and contractors.