Are you classifying your staff correctly? Actually, do they work as independent contractors? How can you identify whether a person is an independent contractor or an employee in Texas? Fortunately, you can utilize a twenty-factor test developed by Texas, or at minimum, the Texas Workforce Commission (TWC), to establish if your worker is either a freelancer or a staff.
Regardless of workers not satisfying every requirement, they may still be considered employees. In order to assess whether a person is an employee or an independent contractor, the courts will look at each of the characteristics individually. An Austin employment lawyer can help you understand it better.
The Twenty Factor Independent Contractor Test by the Texas Workforce Commission
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Instructions
An employee is given directions on how, when, and where to complete the task. A contractor accomplishes the work they are contracted to do in their own unique way. All in all, they essentially work alone.
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Integration
Workers are integrated into company activities.
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Individual Service
Personalized services are offered by staff. Independent employees have the right to assign another individual their duties.
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Employing, Managing, and Paying Helpers
Other firm workers are in charge of supervising the staff.
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The relationship that is ongoing
Month after month, workers stay employed by the same company.
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Set Work Hours
Staff members’ work schedules are set in advance. The days and hours that independent freelancers labor want to work on are entirely up to them.
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Complete Time Needed
Employees usually give their bosses their undivided focus. Freelance contractors are not to be forced to work only for one company full-time, legally.
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Location
Employers direct their employees to work there.
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Order or succession
Work is completed by employees in the sequence designated by the employer.
- Oral or Written Reports
Regular updates on progress are required from the workforce. Independent contractors are often not compelled to do this.
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Regularity of Payment
Companies provide regular payments to employees at standard times.
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Payment of Business and Travel Expenses
Employers often pay for or repay employees for business-related travel.
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Equipment for Tools
Tools are typically given to employees. Independent contractors bring their own equipment.
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Significant Investment
Employee investment in the company is negligible to nonexistent.
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Realize a profit or loss.
Employees are not aware of profit or loss.
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Working with many companies
Employees often only have one employer at a time.
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Public Service Provision
Employees do not provide their services to the public.
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Right to Terminate Employment Without Penalties
Without incurring any obligation, employers are free to terminate employees at any moment.
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No-Liability Right to Resign
Without incurring any responsibility, employees are free to leave at any moment.
