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Opportunity for Profit or Loss
Because petitioner was paid not a fixed wage but a
percentage of gross amounts billed to customers, and because the
number of deliveries petitioner made depended significantly on
petitioner’s efficiency, petitioner had an opportunity to
participate in ECI’s profits. Because petitioner provided and
paid for the truck and insurance, among other things, petitioner
risked a net loss if his profits did not exceed his expenses.
This factor indicates an independent contractor
relationship.
Termination of the Work Relationship
Under the June 1999 operating agreement, ECI and/or
petitioner were to give 30 days’ notice before a termination of
petitioner, but ECI had a practice of allowing truck drivers to
terminate without notice, if the truck drivers so desired.
We regard this factor as neutral.
Participation in Service Integral to Regular Business
Because truck drivers were an integral part of ECI’s regular
delivery service, petitioner participated as a truck driver in
ECI’s regular business for the years in issue.
This factor indicates an employment relationship.
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Last modified: March 27, 2008