Hi Wendy - this is what the IRS says is an “Independent
subcontractor”. This is taken from form 533 ('98 version), which
you can view from the IRS website (don’t have the address offhand
- a simple search should find it).
"Independent Subcontractor People such as lawyers, contractors,
subcontractors, public stenographers, auctioneers, who follow an
independent trade, business, or profession in which they offer
their services to the general public are generally not employees.
However, whether those people are independent contractors or
employees depends on the facts in each case. The general rule is
than an individual is an independent contractor if the payer has
the right to control or direct only the result of the work and
not what will be done and how it will be done. Income earned by
an independent contractor is SE [self-employment] income.
You are not an independent contractor if you perform services
that can be controlled by an employer (what will be done and how
it will be done). This applies even if you are given freedom of
action. What matters is that the employer has the legal right to
control the details of how the services are performed. If an
employer-employee relationship exists (no matter what the
relationship is called), you are not an independent contractor.
For more in determining whether you are an
independent contractor or an employee, get Publication 15-A."
Hope this helps! If you have doubts, I would really talk to a
professional tax accountant. Regards, Lori Bugaj
One-Eyed Collie Jewelry Design