Independent contractor status is determined by several factors, which differ among the various government agencies and courts that enforce regulations. The rules can be complex, and they often overlap. In all cases, however, it’s not a single factor but the totality of the circumstances that determines whether a worker is an independent contractor or employee.
Answer the following questions to determine your compliance with the classification rules
for independent contractors:
For a worker to be an independent contractor under the law, you want to answer yes to most, if not all, of these questions. Questions pertaining to the worker’s schedule, setup, general expenses and other day-to-day working conditions will hold the most weight in your classification decisions.
Note: Beginning with calendar year 2020, the IRS will be using form 1099-NEC for reporting independent contractor earnings. For additional information on the 1099-NEC form, please see the IRS site.
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