IRS 20 Point litmus Test

The IRS has a 20-factor test to use as a guide in determining whether a worker is an employee or an independent contractor. These factors are:

 

1. Instructions Is the worker required to comply with employer’s instructions
about when, where, and how to work?		 YES NO
2. Training Is training required? Does the worker receive training from or
at the direction of the employer, includes attending meetings and working with
experienced employees?		 YES NO
3. Integration Are the worker’s services integrated with activities of
the company? Does the success of the employer’s business significantly
depend upon the performance of services that the worker provides?		 YES NO
4. Services Rendered Personally Is the worker required to perform the work
personally?		 YES NO
5. Authority to hire, supervise and pay assistants Does the worker have the ability to hire, supervise and pay assistants for the
employer?		 YES NO
6. Continuing Relationship Does the worker have a continuing relationship with
the employer?		 YES NO
7. Set Hours of Work Is the worker required to follow set hours of work? YES NO
8. Full-time Work Required Does the worker work full-time for the employer? YES NO
9. Place of Work Does the worker perform work on the employer’s premises
and use the company’s office equipment?		 YES NO
10. Sequence of Work Does the worker perform work in a sequence set by the
employer? Does the worker follow a set schedule?		 YES NO
11. Reporting Obligations Does the worker submit regular written or oral reports
to the employer?		 YES NO
12. Method of Payment How does the worker receive payments?
Are there payments of regular amounts at set intervals?		 YES NO
13. Payment of Business and Travel Expenses Does the worker receive payment
for business and travel expenses?		 YES NO
14. Furnishing of tools and materials Does the worker rely on the employer for
tools and materials?		 YES NO
15. Investment Has the worker made an investment in the facilities or equipment
used to perform services?		 YES NO
16. Risk of Loss Is the payment made to the worker on a fixed basis regardless
of profitability or loss?		 YES NO
17. Working for more than one company at a time Does the worker only work for one employer at a time? YES NO
18. Availability of services to the general public Are the services offered to the employer unavailable to the general public? YES NO
19. Right to discharge Can the worker be fired by the employer? YES NO
20. Right to quit Can the worker quit work at any time without liability? YES NO