Form De 38 - Worksheet On Employment Status - 2009 Page 3
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7A "No" answer to questions 4 – 6 indicates that the individual is not in a business for himself or
herself and would therefore normally be an employee.
4.
Does the worker have a separately established
Yes _____
No _____
business?
When individuals hold themselves out to the general public
as available to perform services similar to those performed
for you, it is evidence that the individuals are operating
separately established businesses and would normally be
independent contractors. Independent contractors are free
to hire employees and assign the work to others in any
way they choose. Independent contractors have the
authority to fire their employees without your knowledge or
consent. Independent contractors can normally advertise
their services in newspapers and/or publications, yellow
page listings, and/or seek new customers through the use
of business cards.
5.
Is the worker free to make business decisions which
Yes _____
No _____
affect his or her ability to profit from the work?
An individual is normally an independent contractor when
he or she is free to make business decisions which impact
his or her ability to profit or suffer a loss. This involves real
economic risk, not just the risk of not getting paid. These
decisions would normally involve the acquisition, use,
and/or disposition of equipment, facilities, and stock in trade
which are under his or her control. Further examples of the
ability to make economic business decisions include the
amount and type of advertising for the business, the priority
in which assignments are worked, and selection of the
types and amounts of insurance coverage for the business.
6.
Does the individual have a substantial investment which
Yes _____
No _____
would subject him or her to a financial risk of loss?
Independent contractors furnish the tools, equipment, and
supplies needed to perform the work. Independent
contractors normally have an investment in the items
needed to complete their tasks. To the extent necessary
for the specific type of business, independent contractors
provide their own business facility.
DE 38 Rev. 2 (4-09) (INTERNET)
Page 3 of 7
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