All else equal, taxpayers are more likely to be classified as employees rather than independent contractors if they are allowed to determine their own working hours and work without frequent oversight.

Question

Quizplus · Accepted Answer

The statement is false. The level of control exercised by the employer over the work performed is a crucial factor in determining the classification of a worker as an employee or an independent contractor. The more control an employer exercises over how, when, and where a worker performs the work, the more likely the worker will be classified as an employee. On the other hand, the more autonomy a worker has in determining how, when, and where to perform the work, the more likely the worker will be classified as an independent contractor. Additionally, there are other factors the IRS considers in worker classification, including the nature of the relationship between the worker and the employer, the type of work performed, and the degree of financial control the worker has over the work performed.

All Else Equal, Taxpayers Are More Likely to Be Classified