Employee vs Independent Contractor - Know the Rules

Author: Miles Hutchinson

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

Do you know how to make a proper determination between an employee and an independent contractor? If not, you should attend a briefing on the rules and regulations available to help you with this complicated and risky issue. There are multiple regulations managed by various governmental agencies at both the federal and state level. Prepare your hiring staff to make proper determinations, correctly classify every worker and avoid the fines and penalties that follow misclassification. Establish clear policies and procedures to ensure you don’t become liable for back taxes, overtime pay, or injunction orders from the Department of Labor.

Experienced CGMA and businessman Miles Hutchinson will review the law regarding worker classification and help you ensure full compliance with the pertinent laws and regulations. He will provide practical guidance in these areas that have become the subject of increasing US DOL, IRS, workers compensation and state unemployment scrutiny.

Publication Date: July 2025

Designed For
This course will be invaluable for CFOs, tax managers, accountants, payroll personnel, accounts payable personnel and attorneys.

Topics Covered

• Regulatory sources
• Detailed analysis of the IRS factors that must be met in order to classify a worker as an independent contractor instead of an employee
• Target the control factors that are the most difficult to comply with
• Basic guidelines for making Independent Contractor determinations
• Step-by-step action plan to help the department head/HR/Tax Dept. evaluate the new hire for proper classification
• Best practices to guide worker classification toward full regulatory compliance
• Review the benefits of incorporationg the IRS questionnaire form SS-8 into your determination process
• Three things you must have in your vendor set-up file for the auditor
• Avoiding penalties

Learning Objectives

• Determine proper worker classification
• Explain the safe harbor rules of Independent Contractor classification
• Identify risks associated with misclassification of a worker as an independent contractor
• Identify the primary reason the IRS dislikes independent contractor classification
• Identify the three categories of the "Control Test" used to analyze worker relationships
• Identify the purpose of IRS Form SS-8

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None