Employee vs Independent Contractor Classification Checker
Answer the following questions based on the working relationship. This tool applies IRS common-law rules and the ABC test factors to estimate worker classification. It is for informational purposes only and does not constitute legal advice.
Classification Formula
This tool scores 11 factors across three IRS common-law categories. Each factor is scored 0 (IC indicator), 1 (mixed), or 2 (employee indicator):
- Behavioral Control (max 6 pts): Instructions given, training required, schedule control
- Financial Control (max 8 pts): Worker investment, profit/loss risk, multiple clients, payment method
- Type of Relationship (max 8 pts): Written IC contract, employee benefits, permanency, integral to business
Total Score Range: 0–22
Employee % = (Total Score / 22) × 100
- ≥ 70%: Likely Employee (High misclassification risk)
- 45–69%: Ambiguous / Gray Area (Moderate risk)
- < 45%: Likely Independent Contractor (Lower risk)
Assumptions & References
- Based on IRS Publication 15-A (Employer's Supplemental Tax Guide) and IRS common-law rules for worker classification.
- Incorporates the three-category framework: Behavioral Control, Financial Control, and Type of Relationship.
- References IRS Form SS-8 (Determination of Worker Status for Purposes of Federal Employment Taxes).
- Reflects factors from the ABC Test used in states such as California (AB5), New Jersey, and Massachusetts.
- Misclassification penalties governed by IRC §3509 and applicable state labor codes.
- 1099-NEC reporting threshold: $600+ per year per contractor (IRS Form 1099-NEC instructions).
- This tool does not account for industry-specific rules (e.g., trucking, real estate, direct sales safe harbors under IRC §3508).
- State laws may impose stricter standards than federal IRS rules. Always verify with state labor and tax agencies.
- This calculator is for educational purposes only and does not constitute legal, tax, or HR advice.