Coeur d’ Alene Idaho business owners should use the 15 Part test, to determine if your workers are classified as an Idaho independent contractor or an employee. In today’s economy, more CDA companies are trying to outsource much of their work to lesson higher employee wages, employee taxes and general employee issues. However, if you are treating an independent contractor much like an employee, you could be at risk for fines, back owed wages. The state of Idaho and the federal government takes in a large majority of taxes through payroll. 

Below is the 15-part test that Idaho uses to determine whether you should actually be paying the contractor as an employee. 

 

Coeur d’ Alene Idaho Employee Versus Independent Contractor 15 Factors Are:

1. Skills, qualifications, and training required for the job;

2. Method of payment, benefits, and tax withholding;

3. Right to negotiate agreements with other workers;

4. Right to choose sales techniques or other business techniques;

5. Right to determine hours;

6. Existence of outside businesses or occupations;

7. Special licensing or regulatory requirements for performance of work;

8. Whether the work is part of the employer’s general business;

9. The nature and extent of the work;

10. The term and duration of the relationship;

11. The control of the premises;

12. Whether the worker has the authority to hire subordinates;

13. Whether the worker owns or leases major items of equipment or incurs substantial unreimbursed expenses

14. Whether either party would be liable to the other party upon peremptory or unilateral termination of the business relationship; and

15. Other factors which, viewed fairly in light of all the circumstances in a given case, may indicate the existence or lack of an independently established trade occupation, profession or business

Even though these rules make it seem like you have no control over the work performed, or the people performing it, you actually do. To ensure the absolute best results when bringing on an independent contractor, you must create a detailed/extensive service list.

The more detailed this list is, the less likely any problems will occur with their performance and or with the state. In addition to a well thought out service list, try going a bit further and getting a price quote. Having a price quote will also help you budget for the services and ensure that the charges are within reason.