TN 3 (07-09)
RS 02101.044 Full-Time Work
Citations: Internal Revenue Ruling 56-694
A. Employee Status
Requiring workers to devote full time to the business of the employer is a control factor. It gives the employer control over the amount of time the worker spends working and impliedly restricts the worker from doing other gainful work.
Full time does not necessarily mean an 8-hour day or a 5-day week. Its meaning may vary with the intent of the parties, the nature of the occupation, and customs in the locality. These facts should be considered in defining “full-time.”
Full-time services may be required even though not provided for in writing or orally. For example, a worker may be required to produce a minimum volume of business that requires full-time work. Alternatively, the worker may not be permitted to work for anyone else.
B. Independent contractor status
An independent contractor is free to work when and for whom, he or she chooses. Independent contractors are not required to devote full-time service to one firm exclusively. However, he or she may work full-time for one business because of any of the following reasons:
lack of other contracts;
the contractor chooses to devote full-time to a particular project; or
the terms of the contract require a full-time exclusive effort.
NOTE: Working full-time for one business is consistent with both independent contractor and employee status. Look for whether the relationship is a continuing relationship, suggestive of an employer-employee relationship, and the extent of the control the employer has over the worker.
Social Security Handbook, Chapter 811 : Do you devote full time to the business?