Certified Payroll Professional Practice Exam

When evaluating a worker's relationship with the employer, which factor determines the worker's economic dependency?

1. Worker's investments

2. Worker's initiative

3. Permanency of the relationship

4. Integral nature of the work

The correct answer is: Permanency of the relationship

When evaluating a worker's relationship with the employer, the factor that determines the worker's economic dependency is the permanency of the relationship. This means that if the worker has a continuous and ongoing relationship with the employer, they are more likely to be economically dependent on the employer for their livelihood. This factor indicates that the worker relies on the employer for consistent work and income, which establishes a significant level of economic dependency. In contrast, the other options such as the worker's investments, the worker's initiative, and the integral nature of the work, although important factors in determining the worker's classification, do not directly address the level of economic dependency the worker has on the employer. These factors may contribute to the overall assessment of the worker's status, but they do not specifically pinpoint the economic relationship between the worker and the employer.