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The Twenty-Factor Test: Internal Revenue Service

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The twenty-Factor Test is a comprehensive test that was created by the Internal Revenue Service to define independent contractor status. It determines whether an individual is under the common law rules or not. It helps to identify if there is sufficient control to establish a proper employer-employee relationship. This test has criteria that fall within three categories: control, organization, and economic realities. The degree of importance will vary depending on the oc-cupation and factual context at the time of the performance of the service require. The results of the Twenty Factor Test may vary depending on the situation. It depends on the situation of the individual and if he or she is an independent contractor or a normal employee.

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