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Contractor vs. Employee Classification Quiz

Instructions: Answer each question honestly. Keep track of whether your answers lean toward “Contractor” or “Employee.” At the end, tally the results to see which classification best fits.


🧠 Section 1: Behavioral Control


(How much control do you have over how work is done?)


  1. Do you tell the worker exactly when and where to work?

    • Yes → Employee

    • No, they decide their own schedule → Contractor


  2. Do you provide specific instructions or training on how to do the job?

    • Yes → Employee

    • No, they use their own methods → Contractor


  3. Can the worker hire helpers or substitutes without your approval?

    • Yes → Contractor

    • No, only with my approval → Employee


  4. Do you supervise or review their day-to-day work closely?

    • Yes → Employee

    • No, you only care about final results → Contractor


💵 Section 2: Financial Control


(How is the worker paid, and who controls the financial aspects?)


  1. Does the worker invest in their own tools, software, or workspace?

    • Yes → Contractor

    • No, you provide everything → Employee


  2. Is the worker paid hourly or on salary (regardless of project results)?

    • Yes → Employee

    • No, they’re paid per project or milestone → Contractor


  3. Can the worker make a profit or risk a loss based on how they manage the work?

    • Yes → Contractor

    • No, payment is guaranteed → Employee


  4. Do you reimburse expenses like mileage, supplies, or meals?

    • Yes → Employee

    • No, they handle their own expenses → Contractor


🤝 Section 3: Relationship Type


(How do you and the worker view your relationship?)


  1. Is there a written contract describing the relationship as “independent contractor”?

    • Yes → Contractor

    • No or unclear → Employee


  2. Do you offer benefits like health insurance, paid time off, or retirement plans?

    • Yes → Employee

    • No → Contractor


  3. Is the work ongoing, indefinite, or permanent?

    • Yes → Employee

    • No, project-based or temporary → Contractor


  4. Is the work a key part of your core business operations?

    • Yes → Employee

    • No, it’s supplemental or specialized → Contractor


🧾 Scoring & Interpretation


  • Count your “Employee” answers and your “Contractor” answers.

  • If most answers are “Employee”: The worker likely meets the IRS definition of a W-2 employee — you control how, when, and what they do.

  • If most answers are “Contractor”: The worker likely qualifies as a 1099 independent contractor — they control their own work and take financial risks.

  • If results are mixed: You may need to review IRS Form SS-8 (“Determination of Worker Status”) or consult an employment law specialist.


📘 IRS Guidance Reference

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