<p>artsmarts noted,"As my accountant always explained it, if you can’t do the work at home because you need to use the company’s equipment you can’t legally work as an independent contractor. "</p>
<p>Response: This isn’t necessarily true! I wrote a whole article on the factors that determine independent contractor status vs. employee. There are many factors;however, it all boils down to the control by the company. If all they want is a set end product and each designer is given a lot of leeway about what to do, they could be contractors. On the other hand, if each step in controlled, they must be in at set hours, must use employer equipment, among other factors, they probably are employees. </p>
<p>Moreover, it would be interesting to see if these companies obtained a private letter ruling from the IRS on this, which is available to all employers.</p>
<p>They may indeed be classified as employees. However, simply because they can’t work at home isn’t the only significant factor.</p>