To help determine whether a worker is an employee or an independent contractor for wage withholding purposes, the IRS has developed a 20- factor control test based on common law principles. The factors indicate the degree of employer control over the worker that is sufficient to establish an employer-employee relationship. The relative importance of each factor varies depending on the occupation and the facts involved. The 20 factors are designed to be only guidelines on the question of whether a worker is an employee or an independent contractor. A worker who is required to comply with another individual's instructions regarding where, when, or how work is done is generally an employee.
Control is present if the employer has the right to require compliance with the instructions.
An employer that wants to classify its workers as independent contractors should provide only general and minimal instructions regarding the service of the workers. Training an individual to perform the services in a particular manner and with a particular result reflects the employer's desire to control the way the work is being accomplished. An employer is more likely to train an employee than an independent contractor. An employer should not require an independent contractor to train with an experienced employee, to work with that employee, or to attend meetings. The employer should avoid providing training to independent contractors at periodic and frequent intervals.