• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Who’s an employee? Everyone chimes in

Get PDF file

by on
in Centerpiece,Office Management,Payroll Management

Department of LaborThere are three basic tests for determining a worker’s status as an employee or independent contractor—the IRS’ 20-factor common law test (taxes), the Department of Labor’s (DOL) six-factor economic realities test (minimum wages and overtime) or the three-factor ABC test (state unemployment insurance). Two significant worker status issues have recently arisen. The DOL issued an Administrative Interpretation Letter on the six-factor test. And a state Supreme Court ruling makes it easier to classify a worker as an employee for wage payment purposes.

The six-factor test. Until now, your control over workers has been the linchpin for employee status.

What’s new: The DOL is stressing workers’ economic dependence on an employer, rather than your control over them.

DOL: Most workers are employees. The six factors should be used as guides to answer the question of economic dependence. No single factor, including control, should be o...(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

Leave a Comment