http://www.effortlesshr.com/blog/legal-issues/worker-independent-contractor/ A comprehensive human resources blog with a focus on small business labor laws and employee issues. Mon, 31 Oct 2011 10:47:45 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.effortlesshr.com/blog/legal-issues/worker-independent-contractor/#comment-190 Cristin Fri, 25 Jul 2008 00:12:21 +0000 http://www.effortlesshr.com/blog/?p=27#comment-190 The IRS has recently moved away from the 20 factor test, and regrouped the analysis into three broad characteristics: Behavioral Control, Financial Control and Type of relationship. The 20 factors do help to shed light on the big picture, though some of them wind up being insignificant in comparison to others. Instead of getting stuck on all of the small details, it is more important to look at the big picture. Is the employer controlling the behavior of this worker? Are they limiting the worker's risk for profit or loss and other clients? Does the worker appear to be a vital part of the employer's organization? These questions will help to see the big picture instead of getting hung up on minute details. A strong YES to any of the three will certainly undermine the potential for a valid independent contractor relationship. The IRS has recently moved away from the 20 factor test, and regrouped the analysis into three broad characteristics: Behavioral Control, Financial Control and Type of relationship. The 20 factors do help to shed light on the big picture, though some of them wind up being insignificant in comparison to others. Instead of getting stuck on all of the small details, it is more important to look at the big picture.
Is the employer controlling the behavior of this worker? Are they limiting the worker’s risk for profit or loss and other clients? Does the worker appear to be a vital part of the employer’s organization? These questions will help to see the big picture instead of getting hung up on minute details. A strong YES to any of the three will certainly undermine the potential for a valid independent contractor relationship.

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