You are the HR Professional for your organization and you're working with the management to define the role of contractors versus employees in your organization. According to the Internal Revenue Serv

Financial control is one of the three official IRS categories, examining whether the business controls the economic aspects of the worker's job such as how the worker is paid and whether expenses are reimbursed.

The IRS common-law test for distinguishing employees from independent contractors relies on three categories: behavioral control (how the work is done), financial control (how the worker is paid and manages expenses), and type of relationship (written contracts, benefits, permanency). Locale or location of work is not a separate IRS category; it may be a factor within behavioral control but is not recognized as a standalone classification category.

Behavioral control is one of the three official IRS categories, examining whether the company controls or has the right to control what the worker does and how the work is performed.

Type of relationship is one of the three official IRS categories, examining written contracts, employee benefits, permanency of the relationship, and whether the work is a key business activity.