Jordan performs services for Ryan. Which, if any, of the following factors indicate that Jordan is an independent contractor, rather than an employee?
A)Ryan sets the work schedule.
B)Ryan provides the tools used.
C)Jordan files a Form 2106 with his Form 1040.
D)Jordan is paid based on tasks performed.
E)None of these.

Question

Quizplus · Accepted Answer

Being paid based on tasks performed is a characteristic of an independent contractor because they are typically paid for completing a specific job or project, rather than receiving a regular salary. The other factors listed, such as Ryan setting the work schedule and providing tools, could indicate that Jordan is an employee. Filing Form 2106 may indicate that Jordan is eligible for certain tax deductions as either an employee or independent contractor.

Jordan Performs Services for Ryan