Determine if a worker should be an employee or contractor — IRS 3-factor test (SS-8).
This tool provides general guidance only and is NOT a legal determination. Worker classification depends on the totality of circumstances and varies by state. Some states (like CA with AB5) use stricter tests. Always consult an employment attorney.
About this tool
Employee or contractor? Answer questions, get your IRS 20-factor classification. Free.
What Is the Worker Classification?
The Worker Classification is a free browser-based legal information tool that helps you understand worker classification checker requirements and generate compliant documents without expensive attorney fees. The tool runs entirely in your browser — no personal information, case details, or document content is uploaded to any server. It uses current employee vs contractor regulations and standards updated for 2026, with citations to relevant statutes and case law. The generated documents are production-ready and formatted for immediate use. Important: this tool provides legal information, not legal advice — consult a licensed attorney for complex situations.
Who Should Use This Tool?
Small business owners use this tool to generate worker classification checker documents without paying $200-500 per hour for an attorney. Freelancers and contractors check employee vs contractor requirements before signing agreements. Startups create compliance documents during formation. Website owners generate 1099 vs W2 policies required by app stores, ad networks, and privacy regulations. Individuals use it to understand their rights and generate request letters. Law students use it as a reference tool to see properly formatted legal documents. The tool is especially valuable for those who cannot afford legal counsel but need basic document generation.
How to Use the Worker Classification
Select your jurisdiction or document type from the dropdown menu. Fill in the required fields — business name, jurisdiction, data practices, or agreement terms depending on the tool. The tool generates a formatted document instantly using current worker classification checker standards. Review the output in the preview panel, then copy to clipboard or download as Markdown or HTML. The generated document includes all legally required sections and citations. For complex situations, use the generated document as a starting point and have an attorney review the final version. All data stays in your browser — nothing is saved or transmitted.
Frequently asked
How does the IRS determine employee vs. contractor status?
The IRS uses a 20-factor test across three categories: behavioral control (does the company direct how work is done?), financial control (who provides tools, sets hours, pays expenses?), and relationship type (written contracts, benefits, permanency). Misclassification penalties reach $25,000 per worker plus back taxes. Answer the factors to get your likely status.
What are the penalties for misclassifying employees?
The IRS assesses 1.5% of wages for unpaid income tax withholding, 20% of the employee's share of FICA, plus 0.5%-25% late-payment penalties. State labor departments add separate fines ($5,000-$25,000 per worker in California). This checker helps you classify correctly before an audit triggers retroactive liability.
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