An independent contractor must maintain a separate business, with his or her own location, equipment and vehicles.An independent contractor must be furnished their own Federal Employer Identification Number unless they are a sole proprietor
. Mr. Jones does not have a separate consulting business unless he is using his holding company.
The independent contractor bills those he or she performs work for and the payment of such work is payable to the business and not to an individual.
If he is using the holding company and billing the Town of White Springs, he could be a consultant….or if he is a sole proprietor. But my understanding is that checks are being made to Mr. Jones directly and not to his business.
The Independent contractor also is one in which has control over the hours, the days and the work which is being performed.
Mr. Jones was told by Mayor Helen Miller as to the hours he would work each day so therefore this would signify that Mr. Jones is an employee (Town Manager) and not a consultant.
Others maintain no control over the independent contractor’s work as they do in the case of employment.
Mr. Jones currently follows the orders of Mayor Miller and other council members. He has no control over what he wishes to do but must follow the dictates of the council. He is told what he is to do; to whom he should speak; what results are required and when he should report to the council.
An independent contractor also must have more than one bank account for the purpose of paying business expense or other expense related to the services rendered or the work performed.
One would have to determine if he is using a holding company second account or whether it is a sole proprietorship account.
The independent contractor performs work at his or her own election and does not have the necessity of completing an employment application or process.
Although he has not completed an employment application or process, he does not work at his own election and has the necessity of answering to the council and the mayor as to what has been done with their dictates. He has also been given the responsibility of being able to hire, fire and discuss job opportunities with others. Therefore, he is the Town Manager and not a consultant and should fill out an application.