Subcontractor or employee? Use “The 20-Factor” Test

Providers who routinely use the services of massage therapists, radiologists, phlebotomists and other ancillary medical personnel must be aware of how to classify these workers for tax, payroll, and insurance reasons. When a worker doesn’t meet ‘subcontractor’ status, a provider will need to consider including worker’s compensation, health care and other necessities of employee status workers. There are essentially 20 factors that the IRS uses to qualify a worker’s employment status. These factors range from setting work hours to furnishing the main tools necessary to complete a job. Failure to correctly assign a worker’s status can result in heavy fines if a worker is injured on the job. Click on the link below to see how the IRS and state labor boards assign work status at a jobsite.

The IRS 20-Factor Test – Subcontractor or Employee