Misclassifying a worker can lead to back taxes, penalties, and interest. Answer 11 questions based on the IRS common-law test to assess your risk level.
Does the business control how and when the worker performs their work? Instructions, training, set schedules, and required procedures all point toward employee status.
Does the worker have a significant investment in their own tools? Can they profit or lose money? Do they market their services to others? These factors indicate contractor status.
Is there a written contract? Are benefits provided? Is the work a core part of the business? Is the relationship ongoing? The nature of the relationship matters.
Important: This quiz provides a general risk assessment based on the IRS common-law test for educational purposes only. Worker classification is a facts-and-circumstances determination: no single factor is decisive, and the IRS considers the totality of the relationship. Separately, the Department of Labor applies its own “economic reality” test for wage-and-hour purposes under the FLSA, which has changed several times in recent years; that test differs from the IRS tax classification test used here. State laws may impose additional or different requirements. Consult with a tax professional before making classification decisions.
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