IRS Tax Publications
If you are not sure whether you are an employee or an 
independent contractor, get Form SS-8, Determination 
of Worker Status for Purposes of Federal Employment 
Taxes and Income Tax Withholding. Publication 15-A, 
Employer’s Supplemental Tax Guide, provides additional 
information on independent contractor status.

IRS Electronic Services
You can download and print IRS publications, forms, and 
other tax information materials on the Internet at www.irs.
gov. You can also call the IRS at 1-800-829-3676 (1-800-
TAX-FORM) to order free tax publications and forms.
Publication 1796, 2007 IRS Tax Products CD (Final                                                                        INDEPENDENT 
Release), containing current and prior year tax publi-                                                                   CONTRACTOR
cations and forms, can be purchased from the National 
Technical Information Service (NTIS). You can order 
Publication 1796 toll-free by calling 1-877-233-6767 or 
via the Internet at www.irs.gov/cdorders.
Call 1-800-829-4933, the Business and Speciality Tax 
Line, if you have questions related to employment tax 
issues.

                                                                                                                         OR

                                                                                                                 EMPLOYEE

                                                           Publication 1779 (Rev. 6-2022)  Catalog Number 16134L 
                                                           Department of the Treasury  Internal Revenue Service 
                                                           www.irs.gov

Independent Contractor  orEmployee

Which are you?                                                                                                                    When You Are an Employee...
For federal tax purposes, this is an important distinction. Worker classification affects how you pay your federal income tax,      . Your employer must withhold income tax and your 
social security and Medicare taxes, and how you file your tax return. Classification affects your eligibility for social security portion of social security and Medicare taxes. Also, 
and Medicare benefits, employer provided benefits and your tax responsibilities. If you aren’t sure of your work status, you      your employer is responsible for paying social security, 
should find out now. This brochure can help you.                                                                                  Medicare, and unemployment (FUTA) taxes on your 
                                                                                                                                  wages. Your employer must give you a Form W-2, 
                                                                                                                                  Wage and Tax Statement, showing the amount of 
                                                                                                                                  taxes withheld from your pay.
The courts have considered many facts in deciding             Financial Control
whether a worker is an independent contractor or an 
employee. These relevant facts fall into three main           These facts show whether there is a right to direct or              When You Are an Independent 
categories: behavioral control; financial control; and        control the business part of the work. For example:
                                                                                                                                  Contractor...
relationship of the parties. In each case, it is very         Significant Investment – if you have a significant 
important to consider all the facts – no single fact provides investment in your work, you may be an independent                    . The business may be required to give you Form 
                                                                                                                                  1099-MISC, Miscellaneous Income, to report what it 
the answer. Carefully review the following definitions.       contractor. While there is no precise dollar test, the 
                                                                                                                                  has paid to you.
                                                              investment must have substance. However, a significant 
Behavioral Control                                            investment is not necessary to be an independent                      . You are responsible for paying your own income 
                                                              contractor.                                                         tax and self-employment tax (Self-Employment 
These facts show whether there is a right to direct or                                                                            Contributions Act – SECA). The business does not 
control how the worker does the work. A worker is an          Expenses – if you are not reimbursed for some or all                withhold taxes from your pay. You may need to make 
employee when the business has the right to direct and        business expenses, then you may be an independent                   estimated tax payments during the year to cover your 
control the worker. The business does not have to actually    contractor, especially if your unreimbursed business                tax liabilities.
direct or control the way the work is done – as long as the   expenses are high.
                                                                                                                                    . You may deduct business expenses on Schedule C of 
employer has the right to direct and control the work. For    Opportunity for Profit or Loss – if you can realize                 your income tax return.
example:                                                      a profit or incur a loss, this suggests that you are 
Instructions – if you receive extensive instructions          in business for yourself and that you may be an 
on how work is to be done, this suggests that you are         independent contractor.
an employee. Instructions can cover a wide range of 
topics, for example:                                          Relationship of the Parties
• how, when, or where to do the work                          These are facts that illustrate how the business and the 
• what tools or equipment to use                              worker perceive their relationship. For example:
• what assistants to hire to help with the work               Employee Benefits – if you receive benefits, such as 
• where to purchase supplies and services                     insurance, pension, or paid leave, this is an indication 
If you receive less extensive instructions about what         that you may be an employee. If you do not receive 
should be done, but not how it should be done, you            benefits, however, you could be either an employee or 
may be an independent contractor. For instance,               an independent contractor.
instructions about time and place may be less important       Written Contracts – a written contract may show what 
than directions on how the work is performed.                 both you and the business intend. This may be very 
Training – if the business provides you with training         significant if it is difficult, if not impossible, to determine 
about required procedures and methods, this indicates         status based on other facts.
that the business wants the work done in a certain way, 
and this suggests that you may be an employee.