Employee vs. Independent Contractor Assessment
This tool helps assess the relationship based on common classification factors. It is NOT a legal determination.
Behavioral Control Factors
Who controls or directs how the worker performs the tasks?
Instructions: Who gives instructions about when, where, and how to work?
Training: Is the worker trained by the employer to perform the job?
Integration: Are the worker's services integrated into the business operations?
Services Rendered Personally: Must the services be rendered personally by the worker?
Hiring/Supervising Assistants: Does the employer hire, supervise, or pay assistants?
Continuing Relationship: Is there a continuing relationship between the worker and the employer?
Set Hours of Work: Does the employer set the worker's hours?
Full-Time Required: Does the employer require the worker to work full-time?
Doing Work on Employer's Premises: Is the work done on the employer's premises?
Order or Sequence Set: Does the employer set the order or sequence of the work?
Financial Control Factors
Who controls the business aspects of the worker's job?
Payment: How is the worker paid?
Expenses: Are the worker's business expenses reimbursed?
Furnishing Tools and Materials: Who furnishes the significant tools, materials, and supplies?
Significant Investment: Has the worker made a significant investment in facilities or tools used in performing services?
Realization of Profit or Loss: Can the worker realize a profit or incur a loss?
Working for More Than One Firm at a Time: Can the worker work for more than one firm at a time?
Making Services Available to the General Public: Does the worker make their services available to the general public?
Type of Relationship Factors
How do the parties view their relationship?
Intent (Written Contract): Does a written contract define the relationship? What does it say?
Note: A contract is important, but the actual working relationship carries more weight than what a contract says.
Employee Benefits: Does the employer provide employee-type benefits?
Discharge/Termination: Can the employer discharge the worker? Can the worker quit anytime?
Permanence of Relationship: Is the relationship permanent?
Services as Key Aspect of the Business: Are the services performed by the worker a key aspect of the employer's regular business activity?
Assessment Result
Answer the questions in the tabs above and click Assess.
The Employee vs. Independent Contractor Assessment tool helps businesses, HR professionals, and legal advisors determine the correct classification of workers. Proper classification is critical to comply with labor laws, tax regulations, and avoid penalties related to misclassification.
This assessment evaluates key factors such as behavioral control, financial control, and the nature of the working relationship. By answering a series of questions about job duties, work schedules, payment methods, and contract terms, you can clarify whether a worker qualifies as an employee or an independent contractor under IRS and Department of Labor guidelines.
Misclassifying workers can lead to serious consequences including back taxes, fines, and legal disputes. Using this tool supports informed decision-making, reduces risks, and ensures compliance with federal and state regulations.
Whether you’re hiring new workers, auditing current classifications, or managing payroll, the Employee vs. Independent Contractor Assessment simplifies complex classification rules into an easy-to-understand format. It empowers employers to apply best practices and maintain proper documentation.
Start using the Employee vs. Independent Contractor Assessment today to classify your workforce accurately and protect your business from costly legal challenges.