Broadly speaking, a worker’s status is based on the engaging entity’s degree of control over the work performed with reference to three general categories:
Behavioral control. Does the engaging entity have the right to control the what, when, and how the work should be performed? This includes the instruments, equipment, schedule, what order or sequence to follow, and who can hire workers to assist with the job. An employee has less behavioral control than an independent contractor and is subject to the engaging entity’s direction.
Financial control. Does the engaging entity have the right to control fees, payment and collection policies? How is the worker compensated for performance and reimbursed for expenses? To what extent will the worker incur a financial profit or loss from his or her activities? An independent contractor generally exercises greater financial responsibility and faces a greater risk of financial loss than an employee.
Nature of the relationship. Are employee-type benefits, such as insurance, vacation pay, or sick pay, provided to the engaged dentist? Is the worker responsible for securing all of his/her own patients, or are patients provided by the engaging entity?
See more: Am I an employee or an independent contractor?