The Common Law Test to determine whether a worker is an employee
The table below from the American Payroll Association’s Fundamentals of Payroll classifies employees versus independent contractors under the Common Law Test.
Employee | Independent Contractor |
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Nonemployees use Form W-9 to provide a taxpayer identification number (social security number or employer identification number) to the company that the nonemployee has received a reportable payment.
Source: American Payroll Association
Disclaimer: This information is not intended to provide a definitive answer. Always seek guidance from your attorney or accountant when classifying employees. Employers or independent contractors can get a definitive IRS ruling on their worker’s status by completing Form SS-8.