If an individual has an opportunity for profit or loss, it supports an independent contractor relationship.The more loosely defined the instructions, the more likely this allows the individual to be an independent contractor.The more specific the instructions, the more it indicates an employee-employer relationship.Instruction on when or where the work is performed.Evaluating the result of an individual’s work may indicate an independent contractor relationship.Evaluating how the work is performed may indicate an employee-employer relationship.This may include advertising, maintaining a location and bidding and providing services to other customers besides ASU. For an independent contractor status to be supported, the individual must be able to seek out other business opportunities while providing work for ASU.The more an individual relies on ASU for his or her financial solvency, the more this indicates an employee-employer relationship.A fixed fee is indicative of an independent contractor relationship use when possible.Hourly, weekly or monthly fees may indicate an employee-employer relationship.If so, it would be extremely difficult to support an independent contractor determination. Still, we caution agreeing to reimburse an individual if he or she is paid on an hourly basis. If ASU reimburses an individual of certain costs, this will not invalidate his or her treatment as an independent contractor. Providing expense reimbursements is more indicative of an employee-employer relationship however, we realize it is customary for guest lecturers to receive travel-related costs.While each case is different, below are several factors that Tax Services will use to review the relationship. The extent that ASU controls both the work and the economic aspects play a significant part in determining if someone will be approved as an independent contractor or if the department should hire them as an employee.

Idependent contractor expenses