Excerpted from "Social Security Handbook". See the up-to-date, official Social Security Handbook at ssa.gov.

815. Are you paid at specified intervals?

815.1 Are you paid by the hour, week, or month?

If you are paid at regular intervals, a factor of control exists. In addition, if you are guaranteed a minimum salary, or if you are compensated through a drawing account (provided that you are not required to repay earnings in excess of your approved draw), an employer-employee relationship tends to exist.

815.2 Are you paid by the job?

If you are paid by commission or on a job basis, you are likely an independent contractor. Payment by the job includes a lump sum. This lump sum is normally computed by the number of hours worked against a fixed rate per hour. The lump sum payment may be broken out into weekly or monthly installments if this method of payment is convenient for a particular job.

Last Revised: March, 2001

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