Click to Call
Get Directions
As a business owner in the Boise, ID area, it’s important to know if you are working with an independent contractor or if you have an employee according to the Idaho rules. The difference can affect your business in a variety of ways. Idaho State uses a control test to help determine if the working relationship is employee-employer or an independent contractor. The “Right to Control Test” has four main areas to help guide you through the distinction.
- Control by the business. If the business requires set hours of work, provides training, integrates the worker into the business’s main mode of operation, or has a requirement of reports on a schedule, then it is an employee-employer relationship. If the worker provides their service to other companies and the general public, it’s likely they are an independent contractor.
- Method of payment. If payment is made by regular intervals – hour, week, day, month or other intervals, the relationship is employee-employer. If the worker could have a profit or loss as a direct result of their service, then they are considered an independent contractor.
- Necessary equipment. If the company provides the equipment necessary, then it is seen as an employee-employer relationship. An independent contractor makes the equipment investment.
- In an employee-employer relationship, there is an ongoing relationship focused around the work. If it is not an employee, the relationship can be ended without liability by either party at any time.
A “yes” to any of these items can mean the relationship is employee-employer. Use the “Right to Control Test” as a guide.
Fuhriman Insurance Agency
The Fuhriman Insurance Agency provides commercial insurance to companies in the Boise, ID area. Contact a Fuhriman agent today to review your business insurance needs.