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20-Point Checklist to Differentiate Between Employee or Independent Contractor   Back to news list
February 29, 2016

Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties. In the past, the IRS used a list of 20 factors to help agents, employers and the courts determine worker status for tax purposes. Each of the factors falls into three main categories: Behavioral, Financial and the Type of Relationship. The importance of each factor ultimately depends on the individual circumstances. These rules are intended only as a guide, but they should be helpful in determining whether you wield enough control to show an employer-employee relationship.
You can read more about this issue - and other relevant business and tax issues - in the 1st Quarter issue of our quarterly business newsletter, Our Perspectives.