Are You Self-Employed?
ARE YOU SELF-EMPLOYED?
If you answer YES to any of the below items, then, YOU ARE SELF-EMPLOYED!
- Are you in business for yourself- YOUR THE BOSS
- Do you carry on a business as a sole proprietor
- Are referred to as independent contractor (i.e. you will receive a Form 1099 Misc)
The general rule for an independent contractor (IC) is:
IF the person that hires you, has the right to control or direct ONLY the result of your work, and NOT what will be done and the method of accomplishing the result, this is a clear indication that you are an IC.
This can be a gray area for employer/independent contractor relationships so therefore the distinction on whether a person is an employee or independent contractor is critical for a business owners.
For this reason, the EDD & CA.Gov websites have provided great resources that can be used by the proprietor of a business to determine whether a worker is most likely an employee or an independent contractor.