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IRS Tax Map 2008
Current IRS Tax Map

Rev. date: 09/2006


Independent Contractor vs. Employee

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Tele-Tax Topic 762
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To determine whether a worker is an independent contractor or an employee under common law, you must examine the relationship between the worker and the business. All evidence of control and independence in this relationship should be considered. The facts that provide this evidence fall into three categories – Behavioral Control, Financial Control, and the Relationship of the Parties.
Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done, through instructions, training, or other means.
Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker's job. This includes:
Relationship of the Parties covers facts that show how the parties perceive their relationship. This includes:
For more information, refer to Publication 15-A, Employer's Supplemental Tax Guide, or Publication 1779, Independent Contractor or Employee. If you want the IRS to determine whether a specific individual is an independent contractor or an employee, file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.