Employee Classification Audit Calculator
ANA›Life Services Authority›National Calculator Authority›Employee Classification Audit Calculator
.calc-container { max-width: 640px; margin: 2rem 0; padding: 1.5rem; background: #fff; border: 1px solid #ddd; border-radius: 8px; box-shadow: 0 1px 3px rgba(0,0,0,0.06); font-family: system-ui, -apple-system, sans-serif; } .calc-container h3 { font-family: Georgia, serif; font-size: 1.15rem; color: #1a1a1a; margin-bottom: 1rem; padding-bottom: 0.5rem; border-bottom: 2px solid var(--ac, #3d5a80); } .calc-row { display: flex; align-items: center; gap: 0.75rem; margin-bottom: 0.75rem; flex-wrap: wrap; } .calc-row label { min-width: 160px; font-size: 0.9rem; color: #333; font-weight: 500; } .calc-row input[type="number"], .calc-row select { flex: 1; min-width: 120px; max-width: 200px; padding: 0.5rem 0.6rem; border: 1px solid #ccc; border-radius: 4px; font-size: 0.9rem; font-family: system-ui, sans-serif; color: #1a1a1a; background: #fafaf8; } .calc-row input:focus, .calc-row select:focus { outline: none; border-color: var(--ac, #3d5a80); box-shadow: 0 0 0 2px rgba(26,74,138,0.12); } .calc-row .unit { font-size: 0.82rem; color: #888; min-width: 30px; } .calc-btn { display: inline-block; margin-top: 0.5rem; padding: 0.55rem 1.5rem; background: var(--ac, #3d5a80); color: #fff; border: none; border-radius: 4px; font-size: 0.9rem; font-weight: 600; cursor: pointer; font-family: system-ui, sans-serif; } .calc-btn:hover { opacity: 0.9; } .calc-result { margin-top: 1.25rem; padding: 1rem 1.25rem; background: #f0f6fc; border-left: 3px solid var(--ac, #3d5a80); border-radius: 0 6px 6px 0; display: none; } .calc-result.visible { display: block; } .calc-result-label { font-size: 0.78rem; text-transform: uppercase; letter-spacing: 0.06em; color: #666; margin-bottom: 0.25rem; } .calc-result-value { font-size: 1.6rem; font-weight: 700; color: var(--ac, #3d5a80); } .calc-result-detail { font-size: 0.85rem; color: #555; margin-top: 0.5rem; line-height: 1.5; } .calc-note { margin-top: 1rem; font-size: 0.8rem; color: #888; font-style: italic; } .calc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 0.75rem; margin-top: 0.75rem; } .calc-grid-item { padding: 0.6rem 0.8rem; background: #f8f9fa; border-radius: 4px; border: 1px solid #eee; } .calc-grid-item .label { font-size: 0.75rem; color: #888; text-transform: uppercase; letter-spacing: 0.04em; } .calc-grid-item .value { font-size: 1.1rem; font-weight: 600; color: #1a1a1a; } @media (max-width: 720px) { .calc-row { flex-direction: column; align-items: flex-start; gap: 0.3rem; } .calc-row label { min-width: auto; } .calc-row input[type="number"], .calc-row select { max-width: 100%; width: 100%; } .calc-grid { grid-template-columns: 1fr; } } .calc-chart { margin: 1rem 0; text-align: center; } .calc-chart svg { max-width: 100%; height: auto; } .calc-chart-legend { display: flex; flex-wrap: wrap; justify-content: center; gap: 0.6rem 1.2rem; margin-top: 0.6rem; font-size: 0.8rem; color: #555; } .calc-chart-legend span { display: inline-flex; align-items: center; gap: 0.3rem; } .calc-chart-legend i { display: inline-block; width: 10px; height: 10px; border-radius: 2px; font-style: normal; } .calc-related { max-width: 640px; margin: 2rem 0 1rem; padding: 1.25rem 1.5rem; background: #f8f9fa; border: 1px solid #e8e8e8; border-radius: 8px; } .calc-related h3 { font-family: Georgia, serif; font-size: 1rem; color: #1a1a1a; margin: 0 0 0.75rem; padding-bottom: 0.4rem; border-bottom: 2px solid var(--ac, #3d5a80); } .calc-related-list { list-style: none; padding: 0; margin: 0 0 0.75rem; display: grid; grid-template-columns: 1fr 1fr; gap: 0.4rem 1.5rem; } .calc-related-list li a { font-size: 0.88rem; color: var(--ac, #3d5a80); text-decoration: none; } .calc-related-list li a:hover { text-decoration: underline; } .calc-browse-all { margin: 0.5rem 0 0; font-size: 0.9rem; font-weight: 600; } .calc-browse-all a { color: var(--ac, #3d5a80); text-decoration: none; } .calc-browse-all a:hover { text-decoration: underline; } @media (max-width: 720px) { .calc-related-list { grid-template-columns: 1fr; } }
Employee Classification Audit Calculator
Assess worker misclassification risk and estimate potential back-tax liability using IRS and DOL guidelines.
Number of Workers Being Audited
Average Annual Pay per Worker ($)
Number of Years Under Review
Behavioral Control Score (0–5)
Does the company control how work is done? (instructions, training, etc.)
Financial Control Score (0–5)
Does the company control financial aspects? (tools, profit/loss, exclusivity)
Relationship Type Score (0–5)
Written contracts, benefits, permanency, integral work?
State Income Tax Rate (%)
Calculate Audit Liability
function empCalc() { // --- Inputs --- var workers = parseFloat(document.getElementById('emp_workers').value); var avgPay = parseFloat(document.getElementById('emp_avg_pay').value); var years = parseFloat(document.getElementById('emp_years').value); var behavioral = parseFloat(document.getElementById('emp_behavioral').value); var financial = parseFloat(document.getElementById('emp_financial').value); var relationship= parseFloat(document.getElementById('emp_relationship').value); var stateRate = parseFloat(document.getElementById('emp_state_rate').value);
// --- Validation --- var errors = []; if (isNaN(workers) || workers 10) errors.push("Years under review must be between 1 and 10."); if (isNaN(behavioral) || behavioral 5) errors.push("Behavioral control score must be 0–5."); if (isNaN(financial) || financial 5) errors.push("Financial control score must be 0–5."); if (isNaN(relationship) || relationship 5) errors.push("Relationship score must be 0–5."); if (isNaN(stateRate) || stateRate 15) errors.push("State tax rate must be between 0% and 15%.");
var resultDiv = document.getElementById('emp_result'); if (errors.length > 0) { resultDiv.style.display = 'block'; resultDiv.innerHTML = 'Please fix the following:' + errors.map(function(e){ return ''; }).join('') + ''; return; }
// --- IRS ABC / Common-Law Risk Score --- // Composite score out of 15; weighted equally across three control categories var compositeScore = behavioral + financial + relationship; // 0–15 var riskPct = compositeScore / 15; // 0.0 – 1.0
// Risk tier var riskLabel, riskColor; if (riskPct ' + riskLabel + '
' + 'Risk Probability: ' + (riskPct * 100).toFixed(1) + '%
' +
'### Estimated Back-Tax Liability (Full Reclassification) ' + '' + 'Total Wages Under Review$' + totalWages.toLocaleString('en-US',{minimumFractionDigits:2,maximumFractionDigits:2}) + '' + 'Employer FICA (7.65%)$' + employerFICA.toLocaleString('en-US',{minimumFractionDigits:2,maximumFractionDigits:2}) + '' + 'Employee-Side Taxes (Sec. 3509a: 3.03%)$' + sec3509EmployeeTax.toLocaleString('en-US',{minimumFractionDigits:2,maximumFractionDigits:2}) + '' + 'FUTA (0.6% on first $7,000/worker)$' + futaTax.toLocaleString('en-US',{minimumFractionDigits:2,maximumFractionDigits:2}) + '' + 'IRS Failure-to-Withhold Penalty (25%)$' + irsFailurePenalty.toLocaleString('en-US',{minimumFractionDigits:2,maximumFractionDigits:2}) + '' + 'IRS Interest (8%/yr, avg ' + avgYearsOutstanding.toFixed(1) + ' yrs)$' + interestCharge.toLocaleString('en-US',{minimumFractionDigits:2,maximumFractionDigits:2}) + '' + 'State Income Tax Withholding (' + stateRate.toFixed(1) + '%)$' + stateTaxLiability.toLocaleString('en-US',{minimumFractionDigits:2,maximumFractionDigits:2}) + '' + 'Total Estimated Liability$' + totalLiability.toLocaleString('en-US',{minimumFractionDigits:2,maximumFractionDigits:2}) + '' + 'Per-Worker Liability$' + perWorkerLiability.toLocaleString('en-US',{minimumFractionDigits:2,maximumFractionDigits:2}) + '' + 'Risk-Adjusted Expected Liability$' + expectedLiability.toLocaleString('en-US',{minimumFractionDigits:2,maximumFractionDigits:2}) + '' + '' + 'This estimate uses IRS Section 3509(a) reduced rates assuming Forms 1099 were filed. If 1099s were not filed, Section 3509(b) doubles the employee-side rates. Consult a tax attorney for case-specific advice.
'; }
#### Formulas Used
Risk Score: (Behavioral + Financial + Relationship) / 15 × 100%
Total Wages: Workers × Avg Annual Pay × Years
Employer FICA: Total Wages × 7.65%
Employee-Side Taxes (Sec. 3509a): Total Wages × (1.5% income tax + 1.53% employee FICA)
FUTA: Workers × min(Avg Pay, $7,000) × Years × 0.6%
IRS Penalty: (Employer FICA + Employee-Side Taxes) × 25%
Interest: (FICA + Employee Taxes + FUTA) × 8% × (Years ÷ 2)
State Tax: Total Wages × State Rate
Risk-Adjusted Liability: Total Liability × Risk Score %
#### Assumptions & References
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