Certified Payroll Professional Practice Exam

The classification of a worker as an independent contractor primarily revolves around their level of control over their work. When a worker is classified as an independent contractor, it signifies that they have the autonomy to determine how and when the work is completed. This means they have the flexibility to set their own schedules, choose their methods, and make decisions about their work processes without direct oversight from an employer. This independence is a key characteristic that differentiates independent contractors from employees, who typically have their work methods and schedules dictated by the employer.

In contrast, having a steady paycheck throughout the year is more indicative of an employee relationship, as employees generally receive consistent pay and benefits. Receiving employee benefits, such as health insurance or retirement plans, further aligns a worker with employee status rather than independent contractor status. Additionally, workers who cannot be dismissed at will typically enjoy greater protections associated with employment, which is not the case for independent contractors who usually work under contract terms that can be adhered to or terminated according to the agreement. Therefore, the defining feature that correctly classifies a worker as an independent contractor is their control over their work.