Need help making the decision? Ask the IRS — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
If you’ve answered the 20 questions (see box, page 5) and you’re still unsure whether a worker is an employee or independent contractor, you can ask the IRS to make the call.
Fill out Form SS-8 (Determination of Worker Status) and send it to the IRS. You can obtain the form at www.irs.gov/pub/irs-pdf/fss8.pdf.
Put your best foot forward. If you show that you exert a great degree of control over the worker, he or she is likely to be labeled as an employee. But the odds are in your favor if you have little or no control over the worker’s duties.
Tip: Workers can also file Form SS-8 on their own behalf. For workers, it may be more beneficial to be classified as an employee to receive fringe benefits