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1099 or W-2 Payee?

The ABC test

This only focuses on a few factors:

A. Whether the hiring firm controls the worker on the contract.

B. Whether the worker is operating an independent with similar other clients.

C. Where the work is performed.

IRS Common Law Factors

Factors which tend to indicate W-2 Employee Status are when the workers:

  1. Must comply with employer's instructions about the work.
  2. Receive training from or at the direction of the employer.
  3. Provide services that are integrated into the business.
  4. Provide services that must be rendered personally.
  5. Hire, supervise and pay assistants for the employer.
  6. Have a continuing work relationship with the employer.
  7. Must follow set hours of work.
  8. Work full-time for an employer.
  9. Do their work on the employer's premises.
  10. Must do their work in a sequence set by the employer.
  11. Must submit regular reports to the employer.
  12. Receive payments of regular amounts at set intervals.
  13. Receive payments for business and/or traveling expenses.
  14. Rely on the employer to furnish tools and materials.
  15. Lack a major investment in facilities used to perform the service.
  16. Cannot make a profit or suffer a loss from their services.
  17. Work for one employer at a time.
  18. Do not offer their services to the general public.
  19. Can be fired by the employer.
  20. May quit work at any time without incurring liability.


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