US · employmentSources checked
What decides whether a US worker is a 1099 contractor or a W-2 employee?
The IRS applies a common-law test that turns on the extent of the right to direct and control the worker. Evidence is grouped into three categories: behavioural control, financial control, and the type of relationship. The IRS states there is no magic or set number of factors, so the whole relationship is weighed rather than any single item deciding it.
Sources
- Independent contractor (self-employed) or employee?irs.gov (Internal Revenue Service) · checked 17 August 2026
Related questions
- Does a written contract settle the classification?
- No. A written contract is evidence within the type-of-relationship category, not the decider. The IRS weighs the whole relationship.
- Is there a number of factors that settles it?
- The IRS states there is no magic or set number of factors, and that the relevant factors vary by situation.
What this answer does not cover
- This is the IRS test for federal tax purposes. Other federal agencies and individual states apply their own classification tests, which this page does not cover.
- This page describes how the test works, not how it applies to any particular working arrangement.
