A Common-Law Employee is an individual under IRS guidelines who is subject to an employer’s control over work details, distinguishing them from independent contractors.
- What is a common-law employee?
Answer: It is an individual controlled by an employer over work details, per IRS rules. - How is a common-law employee defined?
Answer: Defined by the degree of behavioral and financial control exerted by the employer. - What distinguishes a common-law employee from a contractor?
Answer: Employees are directed on how to work, while contractors set their own methods. - What are the employer obligations for common-law employees?
Answer: Obligations include payroll taxes, benefits, and compliance with labor laws. - How is common-law employee status determined?
Answer: It is assessed using IRS factors like training and work integration.
