Being paid on commission does not automatically make a worker an independent contractor. Courts look at the full relationship, including long-term treatment as an employee, supervision, and access to benefits like health insurance and 401(k). Misclassification risks remain high if the facts support employee status despite flexible work arrangements.

The difference between an employee and an independent contractor hinges on one thing: control. And getting it wrong? That can lead to costly IRS penalties, back taxes, and legal headaches.