Collect facts, not labels
- Who decides when, where, and how the work is done; what instructions, training, supervision, and quality control apply.
- Who provides tools, bears unreimbursed costs, makes investments, markets services, risks profit or loss, and controls payment terms.
- Whether benefits, permanence, exclusivity, termination rights, written agreements, and a key part of the business point toward a particular relationship.
Identify every applicable test
The IRS common-law analysis addresses federal employment tax. Wage-and-hour, state labor, unemployment, workers' compensation, benefits, licensing, tax, and industry rules can apply separate standards. A worker can require analysis under more than one law and jurisdiction.
As of this review, the U.S. Department of Labor had published a 2026 proposed rule concerning federal wage-and-hour classification. That changing landscape is one reason to verify current authority rather than relying on an older checklist.
Resolve uncertainty before the relationship hardens
Record the analysis, sources, professional advice, contract terms, onboarding, payment setup, insurance, access, equipment, supervision, and review triggers. Reassess when duties, control, hours, tools, integration, exclusivity, or duration changes.
This guide organizes facts; it does not determine status. Misclassification can create tax, wage, benefit, penalty, insurance, and other exposure, so obtain current legal and tax advice for the actual relationship.