Certified Payroll Professional Practice Exam

The Type of Relationship factor in the Common Law Rules for employee classification is important because it helps to determine the terms of the contract between the worker and the employer. This factor looks at whether there is a written contract in place, the permanency of the relationship, and whether the work performed is a key aspect of the business. By considering the Type of Relationship, it becomes possible to clarify the expectations and obligations of both parties, helping to establish the nature of the working arrangement.