2 ms·
There is a 20 part tes(it’s actually now a 3 part test with 4-6 sub parts each but it’s substantially still the same). The fact that the consultant has to physi
by sarchertech 4y ago
There is a 20 part tes(it’s actually now a 3 part test with 4-6 sub parts each but it’s substantially still the same). The fact that the consultant has to physically come into work at a specified time and uses the clients tools is evidence for them being employees.
That their company receives income from multiple clients, and the engagement is for limited duration is evidence for them being contractors.
The IRS and local governments make the final determination.
https://www.everee.com/blog/irs-independent-contractor-test/ https://www.everee.com/blog/irs-independent-contractor-test/
- csmpltn 4y agoThanks. If there's a subjective test involved, where some things are left to interpretation and circumstantial evidence, my take here is that it would be wisest to work with a lawyer/accountant on setting up the correct structure for each engagement. It's also good to remember that this is the IRS, and that other jurisdictions may have entirely different practices here.