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Worker Classification: Employee vs. Independent Contractor
Understanding classification rules
Worker Classification Basics
Disclaimer: Informational only, not legal advice. Last reviewed August 15, 2025.
Proper worker classification is essential to avoid penalties. The IRS and DOL apply multiple tests to determine if a worker is an employee or independent contractor.
Key factors
- Behavioral control (instructions, training)
- Financial control (payment methods, expense reimbursement)
- Relationship type (contracts, benefits, permanency)