There are plenty of employers out there trying to save money on taxes and avoid liability under employment laws by getting employees to sign Independent Contractors Agreements. Independent contracting has its advantages but most of people labeled as independent contractors are in fact employees. There are facts that you need to know before (or if you already signed then after) signing an Independent Contractor Agreement:

1. Intellectual property: This only pertains if you are creating art, written work, computer programs or other creative works but this could be an advantage to you as an independent contractor. Normally, you own the rights to the work you created as a contractor. Nonetheless, be careful when signing an agreement because the contractor may say that you are creating work that belongs to that company, which realistically surrenders the main advantage of being an independent contractor.
2. Taxes: As an independent contractor you are liable for paying for social security and Medicare taxes. If you are an employee, then your employer is liable for paying half. Be certain that you are actually a contractor before you sign the Independent Contractor Agreement. If you aren’t actually an independent contractor, the IRS will take action against your employer for misclassified employee. If you think you are a misclassified independent contractor, then there is a form that you can fill out, which the IRS will judge and if misclassified, the employer will have to pay what they owe.
3. Restrictions: If you are working and you have someone who is restricting you on what you do and how you do it, then most likely you are misclassified. If the employer controls what time you work, the place, how you work, how many hours you work, and to top it off if you have to ask permission for time off, then you most likely are an employee. As an independent contractor nobody should tell you how to do your work, what time to work, or when you can have vacation time.
4. Equipment and Supplies: Does the employer provide any equipment or supplies? If yes, you are an employee. Independent contractors typically use their own equipment and supplies.
5. Helper: If you need assistance on work that you are doing but the employer will not let you choose your own helper, and then you most likely is an employee. Independent contractors usually have their own freedom to hire help if they need, but they usually just work alone.
6. Training: If the employer provides you with training on how they want the job done, then this is a strong indication that you are an employee. Training for independent contractors aren’t normally full on training, just instruction on the overall results needed.
7. Payment: If you are paid by hour, day or week, then most likely you are an employee. Independent contractors are very often paid by the job, but are sometimes paid hourly. A contractor has more of an opportunity to make a profit or take a loss more than an employee.
8. Multiple Jobs: As an employee you generally only work for a single employer. As a contractor you are free to advertise and take work from other employers.
9. Benefits: If the employer provides you will insurance, sick days, vacation time, pension or other benefits of any sort, then most likely you are an employee.
10. Project Period: If you were hired for an indefinite period of time, as opposed to working on a specific project or series of projects, then most likely you are an employee.

There is not one general factor that qualifies you as an employee. The IRS weighs all the factors and examines the whole period of your employment. If you believe that you have been misclassified, you have options, such as filing the form to the IRS, and just because you signed an agreement doesn’t necessarily mean that you are held to that agreement, just have to wait to see the results from the IRS. Be sure that you’re employer isn’t taking advantage of you.