1099 vs W-2 Checker
Take the IRS 20-factor classification test. Get a clear lean (employee vs contractor) plus next steps.
IRS 20-factor common-law test
Answer all questions for a classification lean. Each question tilts toward employee or contractor.
FAQ
What happens if I misclassify a worker?
IRS penalties: back payroll taxes, fines (up to 100% of unpaid taxes), interest, and unpaid benefits. State penalties on top. Workers can also sue for misclassification.
Is the IRS the only test?
No. The Department of Labor uses an "economic realities" test for wage and hour claims. Several states (CA, MA, NJ) use a stricter ABC test that defaults to employee unless all three conditions are met.
What about California's AB5?
California uses the ABC test for most workers: classified as employee unless (A) free from control, (B) work outside the usual course of business, AND (C) engaged in an independently established trade. Very strict.
I'm unsure - what should I do?
File IRS Form SS-8 for an official determination, or consult an employment attorney. Don't guess - the cost of misclassification often dwarfs legal fees.
Disclaimer. Educational only. Not legal advice. The IRS, DOL, and state agencies have final say. Misclassification carries significant penalties. For binding determination, file IRS Form SS-8 or consult an employment attorney.