Header Flourish 2

How do I determine if an individual is an employee or an independent contractor?

For Workers’ Compensation purposes, an employee is typically defined as someone who is:

Hired to perform specific tasks or services for wages or a salary, under the direction and control of an employer.

This usually means the work being done is customary to the employer’s business and the employer has control over how, when, and where the work is completed.

In contrast, independent contractors are not considered employees. They are usually hired to perform tasks outside the scope of the employer’s regular business operations and typically control how they complete the work. For example, a landscaper hired to prune trees or a handyman hired to remove snow from a sidewalk would generally be classified as independent contractors.

To help determine whether a worker is an employee or an independent contractor, you can refer to the commonly used 20-factor test, which evaluates the level of control and independence in the working relationship.

For further clarification, you can review the IRS guidelines on the difference between employees and independent contractors here:
IRS: Independent Contractor (Self-Employed) or Employee?