Contractor classification

The factors agencies and courts look at.

Start here

PageTypeApplies toState
Independent contractor or employee: the basic questionHow agencies and courts weigh the facts when a worker is an independent contractor or an employee, with US sources and what to read for other countries.OverviewUS rule; elsewhere, check your own regulatorDraft

Guides

PageTypeApplies toState
California AB5 and professional services exemptionsWhat California's state labour agency says about accountants and the ABC test, the Borello test, and how to check whether an exemption fits your work.GuideUS ruleDraft
How to stay a genuine independent contractorPractical habits that keep your working facts consistent with a business of your own, mapped to the IRS and DOL factors, including one-client years.GuideUS rule; elsewhere, check your own regulatorDraft
Misclassification: risks for workers and for businessesWhat misclassification means, who bears the risk, and the IRS routes for resolving it: Form SS-8, the settlement program and the relief provision.GuideUS rule; elsewhere, check your own regulatorDraft
The ABC test: California and MassachusettsHow the ABC test works in California, with the three parts as the state agency states them, and how to read the Massachusetts statute for yourself.GuideUS ruleDraft
The IRS common-law test: behavioural, financial, relationshipThe three categories of evidence the IRS weighs for federal employment taxes, what each covers, and how to ask the IRS to decide with Form SS-8.GuideUS ruleDraft
The US DOL economic reality rule: where it standsStatus as of 5 November 2026 of the Department of Labor's independent contractor analysis under the FLSA: the 2024 rule, FAB 2025-1 and the 2026 proposal.GuideUS ruleDraft

Checklists

PageTypeApplies toState
Contractor classification self-checkA printable tick-box worksheet to record the facts of each engagement under the IRS, DOL and state factors. It is a fact-gathering aid, not a result.ChecklistUS rule; elsewhere, check your own regulatorDraft

Glossary entries

PageTypeApplies toState
ABC testUS rule. The ABC test is a worker-classification test found in some state laws, named for the lettered conditions in the statute.GlossaryUS ruleDraft
Common-law testDefinition of the IRS common-law test and its three categories of evidence: behavioural control, financial control, type of relationship.GlossaryUS ruleDraft
Common-law testUS rule. The common-law test is how federal tax law decides whether a worker is on a payroll or independent.GlossaryUS ruleDraft
Independent contractorDefinition of an independent contractor under the IRS general rule, with the US label and the point that a title does not decide status.GlossaryUS rule; elsewhere, check your own regulatorDraft
Independent contractorAn independent contractor provides services as their own business instead of on someone's payroll.GlossaryUS rule; elsewhere, check your own regulatorDraft
MisclassificationDefinition of misclassification and why the label on a worker does not settle which test applies.GlossaryUS rule; elsewhere, check your own regulatorDraft
MisclassificationMisclassification means treating a worker as an independent contractor when the law's tests cover the relationship as employment.GlossaryUS rule; elsewhere, check your own regulatorDraft

Join the CORAA reviewer waitlist

CORAA prepares audit files for US CPA firms. Reviewers are independent contractors who clear what the software flags, with evidence and a note, paid per file under a contractor agreement.

  • Files are offered to you; you accept or decline
  • No exclusivity: you can work for others
  • The firm reviews and signs; CORAA never does

* required