Common Law Employment Test Definition | Former 20-Question IRS Test

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Common Law Employment Test Definition

Term Definition
The former 20-question test provided by the Internal Revenue Service (IRS), which examined the amount of control over a worker an employer has in determining whether the person is an independent contractor or employee. The IRS still requires this classification of an individual for tax filing purposes. The IRS has replace the test with a page of information and links.

Extended Definition
A common law employee meets a set of factors that are used to determine the classification of the employee. Employers have more right to control and direct an employee than an independent contractor. The test is referred to as the “right to control test” because it ultimately defines who controls the way work is performed. Independent contractors, under IRS laws, remain in control of the manner and means by which the work is performed.

Related Article:
What Is Common Law Employment?
Independent Contractor vs. Employee

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