The IRS looks at employee vs. independent contractor designations on a case-by-case basis. They assume the person is an employee. Getting a Worker Status Determination from the IRS It is sometimes difficult to determine the status of a worker, but if you are unsure, assume the worker is...
What is an independent contractor? An independent contractor operates as their own business and works independently – often for multiple clients. They are responsible for paying both halves of payroll taxes, both the employee’s and the employer’s (which the IRS considers “self-employment tax”...
Company Battles IRS Over Employee vs. Independent Contractor Issue.The article reports on the Tax Court case where a construction company challenged the Internal Revenue Service (IRS) whether workers who supply their own tools on the job are independent contractors or employees. The company has paid...
See this IRS article onUnderstanding Employee vs. Independent Contractor Designationfor more details on the three factors. Note The IRS considers a worker to be an employee unless independent contractor status is clearly indicated by the relationship. The IRS evaluates every situation on a case-by-c...
on whether you are an employee or an independent contractor for purposes of employment laws and theFair Labor Standards Act (FLSA). This is not an article related to the Internal Revenue Service (IRS) and the test or determination used by the IRS. The IRS test can be found here:IRS Test...
The IRS emphasizes the importance of correctly classifying employees. The IRS classifies a worker as an employee or independent contractor depending on how much control a business has over their work. Under a contract employment definition, an independent contractor controls the methods and means of ...
The IRS has strict worker guidelines about when someone must be classified as an employee or an independent contractor, which are primarily based on the degree of control and independence the worker retains. The three categories the IRS uses to classify these are: behavior, financing and relationsh...
The employee vs. independent contractor question has been debated for many years. Each of the three parties discussed above (IRS, U.S. Department of Labor, and the courts) offer explanations on how to best classify a worker who may be either an employee or independent contractor. In many ca...
Independent contractors can also file an SS-8 with the IRS to determine whether or not they are really employees eligible to receive benefits. From Independent Contractor vs. Employee back to the Small Business Payroll Home Page Back to the Online Accounting and Small Business Accounting Home Page...
When working with an independent contractor, there are some simple tactics you can use to avoid confusion in the IRS and ensure your work meets your needs: Do not treat an independent contractor as an employee and draw a clear line between independent contractor vs employee. ...