IRS Guide To Subcontractor vs Employee Determination
I was going to reprint the IRS’s guide to Subcontractor vs Employee. Lately, we receive this type of question more than the Premium Audit Bill inquiries. I then came across The Training Manual used by the Internal Revenue Service for separating employees and subcontractors. It is a public document.

The .PDF file is here It is a 160 page guide for auditors and other IRS personnel. Reading the guide may be a little tedious, but the concepts covered are very informative on subcontractors and employees. The time spent on the guide will be well worth it when considering who/what companies are subcontractors.
The main consideration from what I have read is the control the contractor has over the subcontractor. If the contractor has a large amount of control then the contractor could be viewed as an employee. This will be a new item for months to come as the states crackdown on employers that are paying employees as contractors.
The state tax and the workers compensation commissions are beginning to pursue the employers that have non-payroll employees.
I will still print the short version in the next post.
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