Do you have questions about the employee status? Is the person performing the work an employee or independent contractor? The Internal Revenue Service (IRS) has created a fact sheet to assist in your determination. Click here to view the fact sheet.

The fact sheet provides information on the three main categories used by the courts in determining employment status. In addition, the sheet provides general guidelines and specific examples.

Department of Labor wage and hour rules impose strict regulations on the payment of employees. Those regulations include the classification of contract labor and specific policies for fair wage and overtime rules. Generally, an employee cannot be paid for both contract services and employee wages during the same time period for the same basic services. A twenty point checklist is provided by the Internal Revenue Service to be used in determining compliance with employee versus contract labor issues during a Department of Labor audit.

Detailed information can be found in the IRS Publication 15-A and at the IRS Independent Contractor or Employee page on the IRS website.

At Lewis, Hooper & Dick, LLC, we offer comprehensive services in human resources. Please contact David Lunzmann at (620)275-9267.

To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or tax related matter.

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