The Tax Genie genie


Employee vs. Independent Contractor

IRS contends that over 300,000 employers improperly classify employees as independent contractors. Approximately 750 IRS revenue officers are conducting "special" audits to uncover misclassifications.

Why be an independent contractor?

Note: The general rule with respect to an independent contractor is that the "employer" has the right to control only the result of the person's work.

Here are the famous 20 factors of sufficient control to determine if the worker is an employee or Independent contractor:


This list looks impressive. Please don't memorize these. They don't always apply! For instance, if you look at Per Diem Accountants, at times, they certainly look like employees. There are industry-specific exceptions to this set of rules. It is common in the Accounting profession to pay by the hour. This does not make the worker an employee. There are other professions with exceptions. This is still a gray area in tax law, check with a professional concerning your profession.

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