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Worker Classification Checker

Determine if a worker should be an employee or contractor — IRS 3-factor test (SS-8).

IRS SS-8IRS 20-factorABC testState rulesPenalty estimate

Behavioral Control

Company controls work hours8/10

0 = you set your own hours, 10 = company sets exact hours

Company provides equipment7/10

0 = you use your own, 10 = company provides everything

Company sets your schedule9/10

0 = fully flexible, 10 = fixed schedule required

Company directs tasks/methods6/10

0 = you decide how, 10 = step-by-step instructions

Financial Control

Your financial investment is low8/10

0 = you invest significantly, 10 = no investment

Limited profit/loss opportunity3/10

0 = you can profit or lose money, 10 = flat pay

Single client/employer2/10

0 = many clients, 10 = only one client

Services not available to others3/10

0 = you offer widely, 10 = exclusive

Relationship Type

Permanent/ongoing relationship8/10

0 = project-based, 10 = indefinite

Company provides tools/equipment7/10

0 = you provide all, 10 = company provides

Can be dismissed at will8/10

0 = contract-based, 10 = can be fired anytime

Company provides benefits6/10

0 = no benefits, 10 = full benefits

🟠 Likely Employeeclassification result

Employee ← 70/100 → Contractor

Behavioral

7.5

→ Employee

Financial

6.0

→ Contractor

Relationship

7.3

→ Employee

Misclassification Risk: HIGH

⚠️ IRS and DOL increasing enforcement. Penalties include back taxes, benefits, and fines up to $1,000 per worker (IRC §3509).

Recommendations

This arrangement leans toward employee status. Consider reclassifying.
High behavioral control suggests employee status.
Relationship structure suggests employee status.

Form SS-8: If classification is disputed, either party can file IRS Form SS-8 for an official determination. Takes 6+ months but provides a binding ruling.

Data Source & Legal Disclaimer

Effective: 2025-01-01Last updated: 1 years agoUpdate: Annual

Sources: IRS — Independent Contractor or Employee · DOL — Worker Classification

This tool provides general guidance only and is NOT a legal determination. Worker classification depends on the totality of circumstances and varies by state. Some states (like CA with AB5) use stricter tests. Always consult an employment attorney.

Worker Classification Checker

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