Sec. 19-5.2. Definition of employee

(a) Employees whose wages, salaries and other personal service compensation are included in the computation of the payroll factor include every individual, except general executive officers, where the relationship existing between the taxpayer and the individual is that of employer and employee.

(b) Generally, the relationship of employer and employee exists when the taxpayer has the right to control and direct the individual not only as to the result to be accomplished by him but also as to the means by which such result is to be accomplished. If the relationship of employer and employee exists, the designation or description of the relationship, and the measure, method or designation of the compensation is immaterial.

(c) Compensation paid to directors for acting as such is not included in computing the payroll factor.