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

The classification of a common law employee signifies the highest level of control exerted by the employer. This designation typically means that the employer has the authority to dictate not only the work performed but also how that work is to be carried out, encompassing aspects like work hours, the manner of task completion, and even the use of company equipment.

Common law employees are integrated into the employer's organizational structure, receiving benefits such as health insurance and paid time off, and their work is seen as a vital component of the employer's business operations. This level of interaction and oversight aligns with traditional employer-employee relationships, where the employer retains substantial control over most aspects of employment.

In contrast, classifications like independent contractors and freelancers denote arrangements where individuals have more autonomy and control over how they complete their work. They typically work on a project basis, decide on their schedules, and employ their methods without heavy oversight from the hiring entity. Temporary workers may have some employer control during their assignment, but it is generally more limited compared to common law employees, as they may still retain certain independence similar to that of independent contractors and freelancers.