Hello, I’m looking for additional resources to better understand the topic behind a question from Black Spectacles Practice Exam Form 2, PCM. The question is as follows:
A sole practitioner has just been awarded a large commission that will require extra help. The architect isn’t sure if they have enough backlog to hire an employee, so they consider hiring someone as an independent contractor.
Which are factors in determining if the hire is a full-time employee vs. an independent contractor? Check the three that apply.
Number of hours worked
Type of service performed
Degree of financial control
Type of relationship
Location where work is performed
Degree of behavioral control
The exam answers say that degree of financial control, type of relationship, and degree of behavioral control are correct, referencing the entirety of the AHPP and Law for Architects as source material.
On page 108 of A Guide to Turning Designs into Buildings, Segal says the following in his discussion of hiring employees: “… the IRS has very clear rules distinguishing a ‘consultant’ from an ‘employee.’ If your employer tells you what to do and how to do it; if you work for your employer primarily in the employer’s office; and if you spend most of your working time working for that employer and not for others, you are an employee, not a consultant.” This source pretty clearly identifies degree of behavioral control, location where work is performed, and number of hours worked as the three correct answers.
I thought the key verbiage may be between a consultant and an independent contractor; but after some research, I found that, per many legal documents and AIA references, a consultant is hired as an independent contractor and their contracts refer to them as such. There seems to be no material difference between the two words.
Am I missing a reference which somehow differentiates a consultant from an independent contractor within NCARB study material? If not, why are Segal’s answers not the three “best” of the many viable answers? Where can a discussion of the better answers be found?