What it is
Whether a worker is an employee or a contractor depends on all the facts. The IRS looks at three categories of evidence, and the file should show that the client considered each.
This worksheet sets out behavioral control, financial control and the type of relationship, with fact tables, state tests and a documented conclusion.
When to use it
- Before engaging a new contractor.
- When a client’s contractor looks like an employee.
- When correcting prior reporting.
What’s inside
- Client and worker block
- Fact tables for the three IRS categories
- State test and Form SS-8 questions
- Conclusion, actions and sign-off
Standard cited
This template follows IRS common law rules. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What are the three categories?
The IRS names behavioral control, financial control and the type of relationship.
What is Form SS-8?
A form used to ask the IRS for a determination of worker status for federal employment taxes. The IRS says a determination can take at least six months, and that filing does not pause the taxpayer’s filing obligations.
Does the worksheet decide the answer?
No. It documents the facts and the judgment, and some states use different tests.
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Last updated 11/06/2026. All free templates.