The factors aren't as simple as answering those 2 questions. There are the 20 of them that are to be considered and it again isn't as cut and dry as one would like.
http://office.microsoft.com/en-us/te...304921033.aspx
This comes from an excel checklist from Microsoft. If anyone knows the ins and outs of Independent Contractor vs. Employee it is Microsoft since they were taken to court over this very issue.
Employee or Independent Contractor? The Implications of Microsoft III
While the company may be doing something "wrong" or "potentially illegal" the tort is not necessarily against you but against the IRS first, after that it's potentially you, IF they were to have paid you as an employee.
I'd say that there's lots of businesses that do things "wrong" from hire undocumented workers to paying people as independent contractors instead of employees. The real question is if you decide that what they are doing is wrong, what happens next?
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