Fundamental Payroll Certification (FPC) 2025 – 400 Free Practice Questions to Pass the Exam

The classification of a worker as an employee is significantly determined by the degree of control that an employer has over how the work is performed. When an employer has the right to control not just the outcome of a job but also the means and methods used to achieve that outcome, this indicates an employer-employee relationship. Employees typically work under specific guidelines set by the employer, including working hours, performance standards, and job instructions.

This level of control contrasts with that of independent contractors, freelancers, and trainees. Independent contractors and freelancers enjoy greater autonomy over how they complete their work, meaning they have the freedom to select their own methods and schedules. Trainees, while overseen by a mentor or supervisor, are not classified as employees in the same way because they might not perform work for compensation, but rather are there to learn.

Ultimately, the classification of workers into employees or independent contractors hinges on the extent of the employer's control, with employees being those who are subject to the employer's direction and supervision.