YourPayBot — Worker Classification DeterminationGenerated 3/2/2026 | yourpaybot.com/tools/worker-classification
Employee vs. Independent Contractor
Answer the 20 IRS classification factors below. Each “Yes” answer indicates traits of an employee relationship; “No” indicates traits of an independent contractor. Results update in real time.
Does the company provide detailed instructions on how the work should be done?
Does the company provide training on how to do the job?
Are the worker's services integrated into the company's business operations?
Must the worker personally perform the services (cannot delegate)?
Does the company hire, supervise, or pay the worker's assistants?
Does the company set the worker's hours of work?
Must the work be performed at the company's location?
Is the worker paid by the hour, week, or month (rather than by the job)?
Does the company pay the worker's business or travel expenses?
Does the company furnish the worker's tools and materials?
Does the worker lack a significant investment in their own equipment or facilities?
Is the worker shielded from the possibility of profit or loss?
Does the worker work for only one company (not multiple clients)?
Does the worker NOT offer their services to the general public?
Is there a continuing or indefinite relationship (not project-based)?
Does the company have the right to discharge the worker at will?
Can the worker quit at any time without liability?
Does the worker receive employee benefits (insurance, pension, PTO)?
Is there a written agreement stating the worker is an employee?
Are the worker's services a key aspect of the company's regular business?
Answer questions on the left to see your classification result.
20 factors from the IRS worker classification test
Factor-by-Factor Summary
| # | Factor | Category | Answer |
|---|---|---|---|
| 1 | Does the company provide detailed instructions on how the work should be done? | behavioral | — |
| 2 | Does the company provide training on how to do the job? | behavioral | — |
| 3 | Are the worker's services integrated into the company's business operations? | behavioral | — |
| 4 | Must the worker personally perform the services (cannot delegate)? | behavioral | — |
| 5 | Does the company hire, supervise, or pay the worker's assistants? | behavioral | — |
| 6 | Does the company set the worker's hours of work? | behavioral | — |
| 7 | Must the work be performed at the company's location? | behavioral | — |
| 8 | Is the worker paid by the hour, week, or month (rather than by the job)? | financial | — |
| 9 | Does the company pay the worker's business or travel expenses? | financial | — |
| 10 | Does the company furnish the worker's tools and materials? | financial | — |
| 11 | Does the worker lack a significant investment in their own equipment or facilities? | financial | — |
| 12 | Is the worker shielded from the possibility of profit or loss? | financial | — |
| 13 | Does the worker work for only one company (not multiple clients)? | financial | — |
| 14 | Does the worker NOT offer their services to the general public? | financial | — |
| 15 | Is there a continuing or indefinite relationship (not project-based)? | relationship | — |
| 16 | Does the company have the right to discharge the worker at will? | relationship | — |
| 17 | Can the worker quit at any time without liability? | relationship | — |
| 18 | Does the worker receive employee benefits (insurance, pension, PTO)? | relationship | — |
| 19 | Is there a written agreement stating the worker is an employee? | relationship | — |
| 20 | Are the worker's services a key aspect of the company's regular business? | relationship | — |
Disclaimer: This tool provides guidance only and does not constitute legal, tax, or accounting advice. Always consult with a qualified professional for definitive worker classification determinations. © 2026 YourPayBot Inc.
IF EMPLOYEE
W-4 Simulator →
Estimate withholding impact
IF NON-RESIDENT ALIEN
NRA Treaty Wizard →
Determine treaty eligibility
PRO TOOLS
Upgrade →
Nexus, Garnishment & more
About the IRS 20-Factor Test
The IRS uses a common law test to determine whether a worker is an employee or independent contractor. While no single factor is decisive, the IRS examines three broad categories:
Behavioral Control
Does the company control or have the right to control how the worker does the job?
Financial Control
Does the company control the business aspects of the worker's job (expenses, tools, profit opportunity)?
Relationship Type
Are there written contracts or employee-type benefits? Is the relationship ongoing or project-based?
Misclassification penalties can be severe: back taxes, interest, penalties under IRC §3509, and potential liability under state laws. When in doubt, consult a tax professional.
Reference: IRS Publication 15-A, Employer's Supplemental Tax Guide; Revenue Ruling 87-41.