Is Your Subcontractor Really an Employee?

Question 3: Do they have an established business of their own?

Take the "Six-Part Test" below

A “yes” answer to all six questions usually means the worker has a business of his/her own, and you are not responsible for workers’ comp premiums, unemployment tax or wage and hour requirements.

	Supervision Do they perform the work free of your direction and control? (See Question 2.)
	Business office Do they maintain and pay for a place of business that is separate from yours? — A cell phone and a truck is not enough. You need to visit his or her place of business and make sure.
	Previously established business Do they have an established, independent business that existed before you hired them? Evidence may include other customers or advertising.
	IRS taxes When you entered into the contract, was the contractor responsible for filing a business tax return with the IRS for his or her business?
	Maintains books Do they maintain a set of books dedicated to the expenses and earnings of the business? You can ask to review them for your protection.
	Required registrations Are they up to date on all required registrations and accounts? UBI number? Check Washington State Department of Revenue tax registration account. Contractor registration number (RCW 18.27), electrical contractor license (RCW 19.28.061) or elevator contractor license (RCW 70.87.240)? Check L&I's Look Up: Contractors or Tradespeople application. If they have employees, do they also have these required accounts? Unemployment insurance account with Washington State Employment Security Department? Call 360-902-9360. Workers' Compensation account with Washington State Department of Labor & Industries? Check at Verify Workers' Comp Premium Status.

Note: If you plan to treat your worker/subcontractor as an independent, make sure you can prove it. You may always ask the person you are hiring to see the above documents.