1. You define the work hours: Generally, independent contractors do the job as they see fit. They set their own hours and work how and when they want. And they should be paid by the project -- never on an hourly basis.
2. You provide equipment or supplies: A hallmark of independent contractors is the fact they supply their own tools, equipment and supplies. After all, contractors are, by definition, independent professionals. It makes sense they would have their own ladder, laptop or lawn mower.
3. The relationship is indefinite: This is another red flag. The more permanent — or even long-term — the relationship, the more likely the worker is an employee. Remember, contractors work on a temporary basis. 
4. You don't receive invoices: The contractor should be treated as a vendor under accounts payable. You should receive invoices, and payment checks should be written to the business name — never the individual. Further, it helps your case if the worker has an Employer Identification Number (EIN) for tax purposes.
5. The worker only works for you: Independent contractors typically work with multiple clients. Contractor status is more apparent if the worker is servicing other customers at the same time he or she is handling your project. 
6. There isn’t a contract: To protect your business, you should always have a signed agreement. Also, you should call it an “Independent Contractor Agreement” so there’s no question about the intent of the relationship. The agreement should specify how much you’re going to pay for the project and under what terms.
7. The worker performs core business services: Contractors should provide supplemental services but shouldn’t be an integral part of your business. For example, if you use a contractor to build a website for your construction company, that’s not a core business service. But if your business is designing websites — and your web designers are independent contractors — that could be a problem.

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• Client Relations & Account Management
• Recruiting
• Strategic Planning