Worker classification changes what you owe and what forms you file. This free tool walks through the control-and-independence factors the IRS weighs and tells you which side you likely fall on.
Answer a few quick questions below. It is private - nothing is submitted or stored - and takes about a minute.
This tool is for general information only and is not tax advice. Results depend on details it does not capture - confirm with your CPA before acting.
Here is what the checker asks and why each step matters. Prefer to talk it through? Contact us and we will help directly.
Behavioral control looks at whether the business has the right to direct and control how the work is done, not merely whether it exercises that right. Instructions on hours, sequence, tools, and where to work, plus training, indicate an employee. Common trap: a written contract labeling you a contractor does not control if the business in fact directs how you work (Rev. Rul. 87-41).
Behavioral and financial control are key IRS factors.
Official guidance: IRS worker classification
A Form W-2 with income tax and FICA withholding (IRC Sections 3402 and 3102) reflects that the payer has already classified you as an employee. The absence of withholding does not by itself prove contractor status; the common-law control test still governs. Common trap: assuming the form you received is conclusive when the underlying relationship, not the paperwork, determines the correct classification.
Use the interactive tool above to see how this applies to your situation.
Official guidance: IRS worker classification
Receiving both a W-2 and a 1099-NEC from one payer usually means the employer split wages from other payments, and the 1099 portion may actually be wages if the same control exists. This pattern is a common audit flag and a basis for filing Form SS-8 or Form 8919. Common trap: reporting the 1099 amount on Schedule C and paying full self-employment tax when it should have been treated as wages.
IRS Form SS-8 can be used to request a classification determination.
Official guidance: IRS worker classification
Financial control examines who bears unreimbursed expenses, investment in equipment, the chance of profit or loss, and whether services are offered to the market. Invoicing, a business bank account, and your own tools point to contractor status. Common trap: treating occasional reimbursed supplies as proof of independence when the company otherwise controls the economics of the work.
Use the interactive tool above to see how this applies to your situation.
Official guidance: IRS worker classification
A Form 1099-NEC reports nonemployee compensation, which a self-employed person reports on Schedule C and subjects to self-employment tax under IRC Section 1402(a). Payers must issue it for $600 or more of nonemployee compensation, but income is taxable even if no form is received. Common trap: assuming no 1099 means no reporting obligation, when all business income must still be reported.
Independent contractors report income on Schedule C and pay self-employment tax.
Official guidance: IRS worker classification
Self-employed taxpayers generally owe quarterly estimated tax under IRC Section 6654 because no employer withholds; payments are made on Form 1040-ES. A common safe harbor avoids the penalty by paying the smaller of 90 percent of the current year or 100 percent of the prior year's tax (110 percent for higher incomes). Common trap: budgeting only for income tax and forgetting the self-employment tax on net earnings under IRC Section 1401.
Self-employed taxpayers often pay quarterly estimated tax.
Official guidance: IRS worker classification
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