Is this the same test the IRS uses?

It's based on the same general categories the IRS common-law test considers (behavioral control, financial control, relationship of the parties), but it's a simplified checklist, not the official IRS determination process — which involves a more holistic, fact-specific analysis.

What is the "ABC test" mentioned in the disclaimer?

Several states (California notably, via AB5) use a stricter three-part "ABC test" where a worker is presumed to be an employee unless the company can prove all three specific conditions — it applies regardless of what a contract says, and can classify workers as employees even when the IRS factors here would lean contractor.

What happens if I misclassify a worker?

Consequences can include back taxes, penalties, unpaid overtime or benefits claims, and in some cases personal liability for company officers — the specifics depend on jurisdiction and how the misclassification is discovered.

Can one factor alone determine classification?

Generally no — classification is meant to be a holistic look at the whole relationship, not a single deciding factor. This tool's score reflects an overall pattern, not a single-factor verdict.

Independent Contractor vs. Employee Classification Evaluator

Business

Check the factors, see your misclassification risk.

Behavioral control

Company sets specific hours the worker must work

Company provides training on how to do the job

Company provides the tools or equipment used

Work must be performed at the company's location

Company directly supervises day-to-day work

Financial control

Worker has few or no unreimbursed business expenses

Worker does not work for other clients simultaneously

Worker is paid a regular wage or salary, not per-project

Worker has no real opportunity for profit or loss

Relationship of the parties

There's no written contract specifying contractor status

Worker receives employee-style benefits (health insurance, PTO)

The relationship is expected to be ongoing, not project-based

Worker's services are a key part of the company's regular business

Misclassification risk

Based on 0 of 13 employee-like factors.

Low

This pattern looks broadly consistent with independent contractor status.

Behavioral control0/5

Financial control0/4

Relationship of the parties0/4

About this tool

Work through common IRS behavioral, financial, and relationship factors used to distinguish employees from independent contractors, and get a misclassification risk score with a category-by-category breakdown — a starting point before you finalize how you classify a worker.

How to use Independent Contractor vs. Employee Classification Evaluator

1
Go through each factor and toggle it on if it accurately describes the working relationship.
2
Review your misclassification risk score and which category (behavioral, financial, relationship) is driving it.
3
Copy the breakdown to document your reasoning or discuss with HR/legal counsel.
4
Re-run it whenever the working relationship changes meaningfully.

Frequently asked questions

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