Common-law definition of 'employee'

For all three employment tax laws, a worker is an employee under the common law rules if the person for whom he works has the right to direct and control him in the way he works, both as to the final results and as to the details of when, where and how the work is to be done. For example, a construction contractor was an employer of his workers since he supervised and controlled the workers, supplied major tools and equipment, sometimes dictated the manner in which a job was accomplished, and had the power to hire and fire. However, the employer need not actually exercise the control; it is sufficient that he has the right to do so. Where the employer does not possess that right, the individual involved is an independent contractor, not an employee.