Freelance Contract Tax Compliance Checker (USA)
This tool helps you review your freelance contract against common factors the IRS uses to distinguish between an independent contractor and an employee for tax purposes. Your answers can highlight areas that might warrant closer review.
This is an informational tool only and not a substitute for professional tax or legal advice. Worker classification is complex and depends on all facts and circumstances.
Behavioral Control
1. Does the client provide detailed instructions on *how*, *when*, or *where* to do the work?
2. Does the client provide training on how to do the work or use their specific systems/equipment?
3. Does the client require you to work specific hours or a set schedule?
Financial Control
4. Does the client reimburse you for ordinary business expenses (e.g., supplies, travel)?
5. Have you made a significant investment in equipment or facilities used for this work (beyond typical tools of your trade)?
6. Can you realize a profit or suffer a loss from the work beyond your agreed-upon rate (e.g., through efficient management of resources, needing to fix errors at your own cost)?
7. How are you paid by the client?
Type of Relationship
8. Is there a written contract clearly defining you as an independent contractor for a specific project or period?
9. Does the client provide you with employee-type benefits (e.g., paid vacation, sick pay, pension plan, health insurance)?
10. Is the relationship expected to continue indefinitely, rather than for a specific project or time period?
11. Are the services you perform a key aspect of the client's regular business operations?
Freelance Contract Compliance Checklist
Based on your responses, this checklist highlights potential areas related to worker classification for tax purposes. Review these points carefully.
Note: This is an informational checklist based on common IRS factors. It is not tax or legal advice. Consult with a professional for your specific situation.