The IRS has discontinued their “20 point” test in determining worker classification. Now just three factors will help you distinguish an independent contractor from an employee.
1. Behavioral
2. Financial
Does the business control how and when a job is performed? Does the worker risk a financial loss? Is there a contract in writing? Is the worker offered benefits such as vacation or pension?
Miss classification will result in penalties from not only the IRS but from Ohio Bureau of Workers’ Compensation and Ohio Department of Job and Family Services. If there is any question on how to classify a worker please contact a WOB Advisor.
