Worker Classification Factors

Does this tool tell me whether a worker is an employee or an independent contractor?

No. It lists your answers under the three categories Publication 15-A uses and shows which way Publication 15-A points for each answer. Publication 15-A says a decision must consider “all information that provides evidence of the degree of control and the degree of independence.”

Can the IRS decide a worker's status for me?

Sometimes. The business or the worker can ask. Publication 15-A says: “If you want the IRS to determine whether or not a worker is an employee, file Form SS-8 with the IRS.” The Instructions for Form SS-8 say the IRS issues no determination letter for “Cases involving current worker classification litigation” or for business-to-business transactions, among other cases. Form SS-8 says the IRS may disclose what you file to the firm, worker or payer it names.

What is a statutory employee?

A statutory employee is a worker who counts as an employee for some employment taxes even when the general control and independence facts point the other way. Publication 15-A names four kinds of work: certain drivers, full-time life insurance sales agents, certain home workers, and full-time traveling or city salespeople.

What is Section 530 relief?

Publication 1976 says Section 530 gives businesses relief from federal employment tax obligations when they meet certain requirements. The tool lists the three requirements and does not test them.

Does the tool ask for my taxpayer identification number?

No. It asks multiple-choice questions only and never asks for a taxpayer identification number, name or address. The IRS forms ask for identifying details, and you enter those on the forms yourself.