Rules and compliance
How do I know if a worker is an employee or a contractor?
Short answer
The IRS looks at three things: behavioral control (who directs the work), financial control (who supplies tools and can profit or lose), and the relationship (contracts, benefits, permanence). If you set the hours and methods, the worker is likely an employee. Some states apply a stricter ABC test.
Form SS-8 lets you ask the IRS for an official determination.
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