- 5 - determining the substance of an employment relationship some of the factors to be considered include: (1) The degree of control exercised by the principal over the details of the work; (2) which party invests in the facilities used in the work; (3) the opportunity of the hired party for profit or loss; (4) whether the type of work is part of the principal's regular business; (5) the permanency of the relationship between the parties to the relationship; (6) whether the principal has the right to discharge the individual; (7) whether the principal provides benefits to the hired party typical of those provided to employees; and (8) the relationship the parties believe they are creating. See Nationwide Mut. Ins. Co. v. Darden, supra at 322- 324; Professional & Executive Leasing, Inc. v. Commissioner, supra at 232-233; Weber v. Commissioner, supra at 387. No one factor is determinative; rather, all the incidents of the relationship must be assessed and weighed. See Nationwide Mut. Ins. Co. v. Darden, supra at 324. The principal's right to control the manner in which the taxpayer's work is performed ordinarily is the single most important factor in determining whether there is a common-law employment relationship. See Leavell v. Commissioner, 104 T.C. 140, 149 (1995). However, the principal need not stand over the taxpayer and direct every move. Moreover, the degree of control necessary to find employee status varies according to the naturePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011