RS 01802.326 Neither an Employee of the Other — Operating Policy
If one party is an employee of the other, there is no partnership. This issue usually arises when one party appears to work at the direction of the other and there have been no contributions other than labor. When the parties are husband and wife, it becomes more difficult to find an employment relationship because there are usually no salary payments. No attempt should be made to force such a finding when there is no firm evidence of a salary. The intent to jointly operate a business and the right to participate in the management of the business are factors indicating a person is not an employee.