33508AG - Page 19

APPRAISAL BUZZ SPRING 2020 | 19 �� those used for overtime, unemployment insurance, workers compensation, or liability. The details of these tests also vary by state. As a result, there is no single standard for determining whether an appraiser is properly treated as an independent contractor. �� runs through most tests. The key is generally the �� The IRS has summarized its own test in its wage withholding regulations and states that a worker is considered an employee when: The person for whom services are performed �� the individual who performs the services �� accomplished by the work, but also as to the details and means by which that result is accomplished. That �� employer, not only as to what shall be done, but how it shall be done. The following are some key factors relating to control that need to be considered. When answers to these questions are “yes,” it is more likely that the appraiser is really an employee: �� perform his or her work? • Is the appraiser required to be present on the �� • Is the appraiser required to work certain hours or days? • �� • �� computer, appraisal software, MLS, laser measuring device, etc.? • Is the appraiser paid by the hour or week (as �� • Is the appraiser permitted to accept and be paid �� appraiser actually take on independent work? • �� • �� • Do either of the parties believe an employment relationship exists? If the answer to any of these questions is a strong “yes,” or if the answer to more than a few of these �� twice before treating its appraisers as contractors. CREATING A MORE DEFENSIBLE INDEPENDENT-CONTRACTOR RELATIONSHIP �� structure their independent contractor arrangements to minimize potential problems. And frankly, even �� actual enforcement has proven low overall. �� contractors should use a written independent contractor agreement spelling out the relationship. Such an agreement is almost never a controlling factor in a test, but it can provide clarity regarding the �� key points the agreement should cover: • The independent contractor appraiser has the right and freedom to work the hours that he or she deems necessary to perform accepted �� appraisals is under the exclusive control of the appraiser.