The Common-Law Test is a set of criteria used by the IRS to determine if a worker is a common-law employee based on control over work, including behavioral and financial factors.
- What is the common-law test?
Answer: It is an IRS criterion to determine if a worker is a common-law employee based on control. - What factors are included in the common-law test?
Answer: Factors include behavioral control, financial control, and relationship type. - Why is the common-law test important?
Answer: It determines tax and benefit obligations for employers. - How is the common-law test applied?
Answer: It is applied by evaluating the employer’s control over work details. - What happens if a worker is misclassified under the test?
Answer: Misclassification can lead to penalties or back taxes for the employer.
