What are the 19 or 20 points that the IRS uses to determine if a person is an employee or a contractor?

Answer 1

You don't need to go too far down that list. A contractor sets their own hours, brings their own tools and equipment and is in charge of what and how they do things.

An employee is anyone who works under your direction and control with set hours and who uses tools, equipment and other things that you provide.

I can promise you that the IRS is looking hard at any claim of a contractor...they want the tax withholding, medicare, and social security contributions that come from employees.

If you want to put out the red carpet for an IRS audit, just claim that you are using independent contractors.

Answer 2

Just for your info, when trying to determine whether an worker is an employee or independent contractor, here is the IRS 20 Factor List:
1. Instructions
2. Training
3. Integration
4. Services rendered personally
5. Hiring, supervising and paying assistants
6. Continuing relationships
7. Set hours of work
8. Full time required
9. Doing work on employers premises
10. Order or sequence set
11. Oral or written reports
12. Payment by week, hour or month
13. Payment of business or traveling expenses
14. Furnishing of tools and materials
15. Significant Investment
16. Realization of profit/loss
17. Working for more htan one firm at a time
18. Making service available to general public
19. Right to discharge
20. Right to terminate
go to www.mdc.edu/hr/operations/AFS/IRSfactortest.pdf to read the descriptions/case law that pertain to each of these factors. You'll understand better when you read it.
Hope this helps!

Answer 3

Go to www.irs.gov and use the "independent contractor" as a search term.

Answer 4

I do not know that, Im a contractor. let me know I would like to know that aswell.