Do labor law determinations indicate employee status?
The Audit Guidelines instruct auditors to ignore the decisions of state and federal non-tax agencies or courts in determining employee status. [BL 10.] State laws determine whether workers are employees for purposes of workers compensation and unemployment insurance. Because the definition of employee for these purposes is often broader than under the common law rules, eligibility for these benefits should be disregarded in determining worker status. [Audit Guidelines, p 2-24.
