Which of the following is NOT a criterion for determining independent contractor status?

To understand why a permanent job position is not a criterion for determining independent contractor status, it's important to recognize the key elements that define an independent contractor according to standards used by the IRS and various legal considerations.

Independent contractors are typically identified through a focus on specific criteria that reflect the nature of the working relationship. These include behavioral control, financial control, and the type of relationship established between the parties.

Behavioral control examines whether the company has the right to direct how the worker performs their tasks. This includes instructions on when, where, and how to work. Financial control assesses whether the worker has significant investment in their work and the opportunity for profit or loss, emphasizing their business-like independence. Lastly, the type of relationship is evaluated based on written contracts, benefits provided, and the permanence of the relationship, which can indicate whether it is intended to be ongoing or project-based.

In contrast, a permanent job position implies an ongoing employment arrangement that is usually associated with employee status rather than independent contracting. Independent contractors often work on a project basis, with no intention of forming a permanent position within a company. Thus, the aspect of permanence in a job clearly differentiates employees from independent contractors, making a permanent job position irrelevant in determining contractor status.