Form De 38 - Worksheet On Employment Status

Form De 38 - Worksheet On Employment Status - 2009 Page 2

WORKSHEET ON EMPLOYMENT STATUS

Questions 1 – 3 are significant questions. If the answer to any of them is "Yes," it is a strong

indication that the worker is an employee, and you have a high probability of risk if you classify

the worker as an independent contractor.

Do you instruct or supervise the person while he or she

Yes _____

No _____

is working?

Independent contractors are free to do jobs in their own

way, using specific methods they choose. A person or firm

engages an independent contractor for the job's end result.

When a worker is required to follow company procedure

manuals and/or is given specific instructions on how to

perform the work, the worker is normally an employee.

Can the worker quit or be discharged (fired) at any time?

Yes _____

No _____

If you have the right to fire the worker without notice, it

indicates that you have the right to control the worker.

Independent contractors are engaged to do specific jobs

and cannot be fired before the job is complete unless they

violate the terms of the contract. They are not free to quit

and walk away until the job is complete. For example, if a

shoe store owner hires an attorney to review his or her

lease, the attorney would get paid only after satisfactory

completion of the job.

Is the work being performed part of your regular

Yes _____

No _____

business?

Work which is a necessary part of the regular trade or

business is normally done by employees. For example, a

sales clerk is selling shoes in a shoe store. A shoe store

owner could not operate without sales clerks to sell shoes.

On the other hand, a plumber engaged to fix the pipes in

the bathroom of the store is performing a service on a one-

time or occasional basis that is not an essential part of the

purpose of the business enterprise. A certified public

accountant engaged to prepare tax returns and financial

statements for the business would also be an example of

an independent contractor.

DE 38 Rev. 2 (4-09) (INTERNET)

Page 2 of 7

Form De 38 - Worksheet On Employment Status - 2009 Page 2