How can I determine whether an individual is an employee or contract labor?
The amount of control exercised over the individual by the employer determines whether that individual should be considered an employee. If the employer has the right to direct and control the way the individual works regarding the details of when, where, and how the work is to be done, as well as the final result, that individual is considered an employee. The IRS 20 Questions can be used to help determine whether they employer’s control is sufficient to consider the individual an employee.
