; and (B) includes a general partnership not described in subparagraph (A) that has registered to do business under State or local law. (3) Compensation (A) In general The term compensation — (i) means consideration paid by a service recipient payor to a service provider payee for goods or services provided; and (ii) includes payments in money, payments in property, wages, salaries, benefits, and other types of payment. (B) Fair market value For purposes of determining the amount of compensation, the value of payments in a form other than legal tender shall be determined by the fair market value of the payment on the date of payment. (4) Direct sales service provider payee The term direct sales service provider payee means a service provider payee who is a direct seller, as defined in section 3508(b) of the Internal Revenue Code of 1986. (5) Elective classification service provider payee The term elective classification service provider payee means a service provider payee who is not classified as either— (A) a mandatory independent contractor under section 103; or (B) a mandatory employee under section 104. (6) Employee The term employee means an individual who— (A) is a service provider payee; and (B) is— (i) classified as a mandatory employee under section 104; or (ii) classified as an employee under section 105. (7) Employer The term employer means a service recipient payor— (A) that is in a substantial economic relationship with a service provider payee who is classified as an employee under section 104 with respect to the service recipient payor; (B) that has entered into employment by agreement under section 104 with a service provider payee