Evaluate whether a worker may be misclassified as an independent contractor using IRS common-law rules, the ABC Test, and DOL economic reality factors. Answer each question to receive a risk score and classification guidance.
Each question is scored 0 (contractor indicator), 1 (neutral), or 2 (employee indicator) and multiplied by its factor weight. The sum is divided by the maximum possible weighted score to produce a 0–100% risk percentage.
Category weights: Behavioral Control (instructions ×2.0, schedule ×1.5, location ×1.0); Financial Control (investment ×2.0, profit/loss ×2.0, market services ×2.0, payment method ×1.5); Relationship Type (benefits ×2.0, permanency ×1.5, integral work ×2.0, substitution ×1.5, written contract ×1.0); ABC Test (direction ×2.0, outside business ×2.0, independent trade ×2.0).
Risk Bands: 0–24% = Low Risk | 25–49% = Moderate Risk | 50–74% = High Risk | 75–100% = Very High Risk
Assumptions & References
Based on IRS Publication 15-A (Employer's Supplemental Tax Guide) common-law rules: behavioral control, financial control, and type of relationship.
Incorporates the ABC Test used by California (AB5/Labor Code §2750.3), Massachusetts, New Jersey, and other states for worker classification.
Reflects U.S. Department of Labor (DOL) "economic reality" test factors under the Fair Labor Standards Act (FLSA).
IRS penalties for misclassification: IRC §3509 provides reduced rates (1.5% income tax + 20% employee FICA) for non-intentional misclassification; full rates apply for intentional violations.
No single factor is determinative; the IRS and courts examine the totality of the relationship.
State rules vary significantly — California's ABC Test is among the strictest; other states use different standards.
This calculator does not account for industry-specific safe harbors (e.g., Section 530 relief) or prior audit history.
Results are for educational/risk-awareness purposes only and do not constitute legal, tax, or HR advice.
