In this course we discuss the requirements needed to determine if a worker is an independent contractor or an employee under various federal and state regulations.

We start with a brief review of the basic characteristics of both types of workers. From this we discuss the Internal Revenue Service’s three categories of Evidence of Control, or what is known as the “three factor test”, to determine whether a worker can be classified as an independent contractor under the IRS rules. This leads to a conversation about the requirements for each of these types of workers under the wage and hour rules. We then examine the IRS form that can be used to help determine the worker’s status.

We review examples of scenarios that can trigger an independent contractor audit and the penalties that can be assessed if the worker is determined to be misclassified. To complete the course, we discuss various examples of state regulations as they pertain to worker classification. This course serves as a sound basis to assist human resources, payroll, or finance professionals in determining how to properly classify a worker as an independent contractor.

Learning Objectives
  • Discover and define the requirements under the IRS regulations that are used to classify workers as independent contractors.
  • Identify the requirements that must be met to classify a worker as an independent contractor under the federal wage and hour laws.
  • Explore and explain how to use the IRS Form SS-8 to assist in making the proper classification for a worker.
  • Identify the state requirements for proper classification of workers under the ABC test.
  • Explore and explain the penalties that can be assessed for misclassifying a worker.
  • Identify the IRS program that can assist an employer in mitigating the penalties for misclassifying a worker.
Last updated/reviewed: March 28, 2024
164 Reviews (555 ratings)

Reviews

4
Member's Profile
I liked the course and the upbeat nature of the presenter. Learning about the laws governing the classification of workers was a marvel. I knew the difference between an employee and an independent contractor, but was unaware there were so many laws to enforce the proper classification. I learned a lot about Form SS-8 and Form 8952. A tremendous amount of information was covered and I am sure there is a lot more to delve into. I will need to return to the site at a later time to master the lesson.

5
Anonymous Author
This course provided a great overview of the importance for employers to correctly identify worker classifications as well as highlighting critical pitfalls to avoid. The facilitator presented content in a clear and concise manner, which contributed to an engaging and effective learning course. Vicki also provided comprehensive supporting materials that can easily serve as a future point of reference. Nicely done!

5
Member's Profile
This course would be beneficial for financial officers, or anyone in payroll or human resources. It gave me a more detailed understanding of how to classify employees, and the information given kept me engaged for the entire course. I was surprised to see how much the penalties can be reduced for employers who voluntarily file the settlement form 8952. I really enjoy Vickie Lambert as an instructor.

5
Anonymous Author
I found this course very informative. The material was presented in a clear and logical manner. The instructor had great presentation slides, was engaging, and had interesting real-world examples. I thought I was pretty knowledgeable on this material but found there was a lot more I needed to learn.

4
Member's Profile
Course did as expected and explained the difference and pitfalls of wrongfully classifying an Employee vs. Independent Contractor. Rule of thumb that I have always gone by is the IRS considers everyone an Employee and you have to prove otherwise. This course offers good info on making sure you document!

5
Member's Profile
This was an excellent course. I don't work in payroll, but for CPA's in private practice this is valuable information. Even if one is more or less familiar with this topic, the level of detail would be very helpful in advising clients. It is obvious that the presenter was an expert in her field.

5
Member's Profile
This was a great class. Anyone who hires employees and/or contractors would benefit from the information provided. The teacher really breaks down all of the areas that employers must look at in making the correct determination and provides great examples and supporting material.

5
Member's Profile
This was by far the best self-study course that I have taken to date. Course was very organized, clear and concise. Information was presented in layman's terms. Examples of violations were insightful. Accounting Manager and above should take this course.

5
Member's Profile
Very comprehensive course covering the topic. Also gets into the penalties and what to do if you find an individual that was misclassified. Slides and handouts very good. Speaker was also very knowledgeable and interesting to listen to.

5
Anonymous Author
Quick and covered a lot of ground with slides that added to the presentation and actual examples of forms. Audio was a little scratchy but didn't overtly affect hearing what was being said. It was a good review of classifications.

4
Anonymous Author
A very good reminder of the importance of classifying employees correctly. I think if the Federal and State guidelines were more simplified and exactly the same it may make it easier for employers to make a correct determination.

5
Member's Profile
Excellent detailed coverage of a crucial topic that is generally unknown to most professionals even with the finance and tax fields. I would have liked to know which of the three questions I answered incorrectly on the final.

5
Member's Profile
Vicki Lambert is one of the best out there. She has the ability to make you understand the most difficult topics. I've been following her for almost 10 years now. This has been another great class of hers. Highly recommend.

5
Member's Profile
Course was comprehensive while focusing on the big picture. Would be helpful for any business owner who has to make the decision of employee vs independent contractor especially when the situation is full of grey areas.

5
Member's Profile
I really enjoyed this course presented by Vicki. It's a notorious and complex subject but she made it fun and as a result easier to understand and remember. I will definitely take a course presented by her again.

4
Member's Profile
This is a great course to learn the difference between an employee and independent contractor. A lot of information was discussed as well as common mistakes a company makes when determining the classification.

5
Member's Profile
The presenter was an expert in her field who knew her material inside and out.This course was a comprehensive review for me about the topic in short 2 hours. Thank you Proformative and Thank you Ms Lambert!

4
Member's Profile
Good course and good material for reference. All payroll managers and supervisors should definitely take this course to ensure their employees and 1099 contractors are being paid appropriately.

5
Anonymous Author
This course provided clear guidance regarding the classification of workers as independent contractors. It outlined the penalties and implications of misclassification and reviewed form SS-8.

5
Anonymous Author
This is an excellent presenter. She gave practical, easy to understand examples. She used slides, but only to support the lively presentation. Payroll is definitely her field of expertise.

5
Member's Profile
This instructor clearly explains the differences between an independent contractor and an employee along with the protections and penalties involved for the employer in this course.

5
Anonymous Author
If you are not sure on the employee classification, this class is a must-watch. It gives you the different tests and other factors that need to be considered for EE classification.

5
Member's Profile
Great information! A lot of it was a refresher but always good to review and update on this information. Instructor was knowledgeable and kept my interest through out the session.

5
Member's Profile
This course was one of the better courses I have taken. I will be using the info from this course to assist my client in determining if status should be employee or contractor.

5
Member's Profile
Great overview on Employee vs Independent contractor. Anyone owning a business should take this course. I have seen lots of companies deal with this and this course will help.

5
Anonymous Author
I really enjoyed Vicki's examples and discussion around these topics. They are helpful in gaining an understanding how to identify an employee vs. independent contractor.

5
Member's Profile
Great content. Test was not a cake walked, which is the sign of a good test. Good application of practical knowledge as well as technical details. Very well presented.

5
Anonymous Author
Great course! I was unaware of the program for voluntary classification, and I am glad it was covered in the course in case I need the knowledge at future employement.

4
Anonymous Author
I especially appreciated the discussion of the various levels and agencies of government and the differences in standards for determining status at each level.

4
Member's Profile
This course had a lot of good information regarding independent contractors and how to qualify them as such. There is a lot of law wrapped around this topic

5
Anonymous Author
This was an excellent course to learn in depth the classifications and current laws surrounding employees v contractors. It will be very helpful in my work.

4
Anonymous Author
I appreciated the "what if" details and the examples. It is always nice to have real life examples to get you to think outside the definitions of the law.

5
Anonymous Author
Good information in determining 1099's. This is a common issue in my industry and the determining factors really help in clearing up issues and opinions.

5
Member's Profile
Great course. Great refresher for those that are recertifying. This also a good future reference for a refresher or reminder regarding classifications.

5
Anonymous Author
Great course. This is always a challenging topic and is debated quite often at our company. This refresher and slides will be a great resource to use.

3
Anonymous Author
The course covers the basics and most important aspects of the concept. I did find a few questions in the quiz a little odd, but still helpful overall.

5
Anonymous Author
Great speaker. It's a lot to take in but I think that for me it created the awareness I need and can go back to review the finer details when needed.

5
Member's Profile
Great course. It's always good to come across this as misclassifying a person an employee or independent contractor can have massive complications.

5
Member's Profile
I really liked this course. I thought it was well paced, comprehensive and detailed but at the right level for an Intermediate course. Excellent.

5
Anonymous Author
Very thorough course on deciding whether a worker is a contractor or not. I will keep the course material on hand. The instructor was excellent.

4
Anonymous Author
Interesting and well structured. It would also be interesting to hear about this topic in relation to foreign companies' entering the US market.

5
Member's Profile
An outstanding overview of the types of tests required to determine employees vs. independent contractors. Very detailed and very thorough.

3
Anonymous Author
This was a long course. Perhaps it could have been split into 2 parts? HR, Payroll and even Accounts Payable would benefit the most.

4
Anonymous Author
Very interesting class and there is much that I feel my HR department overlooks. This is a solid class and is definitely worth the time.

5
Anonymous Author
Determining a workers classification can be a challenging process, this course gives good information on the laws regarding the process.

5
Anonymous Author
This course provides and excellent overview of and Employee vs Independent Contractor. Supporting materials were relevant and concise!

5
Member's Profile
This course really helps to define the difference between an employee and a contractor; including what to do if a mistake is made.

5
Anonymous Author
Great course. Learned a lot. I love the instructor and how easy she explains things so that I can understand it. She is funny too

5
Anonymous Author
Fantastic course. Brings the basics and more advanced ideas, all with context for application in large corporate environments.

5
Member's Profile
The course was well organized and easy to follow. The instructor spoke clearly, and was able to keep the listener's attention.

4
Anonymous Author
Course was easy to understand and provided a detailed breakdown to differentiate between Employee or Independent Contractor

5
Anonymous Author
The content of the course is in depth, and covers board of the knowledge that we need to know about independent contractor.

4
Anonymous Author
sometimes explanations were too drawn out instead of getting straight to the point. otherwise was a great presenmtation.

4
Anonymous Author
Very good information. I thought I was pretty knowledgeable of the differences, but there was quite a bit I didn't know.

5
Anonymous Author
I loved this class and the slides. Very informative and learned some new topics I haven't been taught before. Thank you!

5
Anonymous Author
This reminds me of the good old CPP study days while prepping for the test. This is an awesome class. Thank you Vicky.

5
Member's Profile
Very comprehensive discussion of this risky area of payroll compliance. I liked the pace and the detail explanations.

5
Anonymous Author
Wonderful trainer and course - great refresher for anyone that deal with payroll and contractors - highly recommend

5
Member's Profile
Great refresher! I highly recommend for anyone trying to determine the difference between an employee or contractor.

5
Member's Profile
Good class. Good examples, although some are outdated. I think the pace and amount of time for the class was good.

5
Member's Profile
Very Informative and easy to follow. Vickie is a great speaker and explains things that are easy to understand.

5
Anonymous Author
A thorough review of worker classification by a qualified instructor. Packed with lots of pertinent information.

4
Member's Profile
Good coverage of the issue. Especially liked the section that dealt with the perils of misclassifying workers.

5
Anonymous Author
This was very informative. It really showed me the importance of ensuring that proper classification is made

5
Member's Profile
I thought this was explained exceptionally well! It breaks the rules down easy enough that all can follow them.

4
Member's Profile
Course with lot of details and tips regading employee classification. Good reference to IRS SS8 form and tips.

4
Member's Profile
Vicki does a great job explaining the lesson material and using real life examples to put it in perspective.

3
Anonymous Author
this is a good course for FCP or CPP certificates, great tool also for those needing help to determine status

4
Member's Profile
The materials provided covered the topic. The class was informative and well covered the stated objectives.

5
Member's Profile
Great course. Extensive information.Vicki always does a great job of applying to real world experiences.

4
Anonymous Author
This is a great course. The topics are well organized and the overview and examples provided are helpful.

5
Member's Profile
Very good, useful information presented in an easy to follow format. Real life examples are appreciated.

5
Anonymous Author
Provides a great deal of detail and helpful information to help understand what can be a confusing topic.

5
Member's Profile
This course was very helpful I learned a few things that I had forgotten on classification of employees.

5
Member's Profile
This is a great class on the basic fundamentals about the differences between a employee and a contrctor.

4
Anonymous Author
All employers who use independent contractors should review this course!! Very informative and useful!

5
Anonymous Author
Good to review the fundamentals of employee classification. Good material. My thanks to the presenter.

5
Member's Profile
Great course. Complicated, but very useful. Great teacher. I love the detail that she uses. Great job!

5
Anonymous Author
Very good information for compliance and referring to when in doubt. Good tips also for best practice.

5
Anonymous Author
This course was very informative and relevant - the documentation will be helpful to use with my team

5
Member's Profile
good wording, nice examples on the independent contractors, very easy to understand, great webinar!

5
Member's Profile
Awesome speaker. I learned a lot. This knowledge will continue to be of use in my career. Thanks.

5
Anonymous Author
Actually enjoyed this course. I took it as refresher and found it well organized and interesting.

4
Anonymous Author
This was a good training. The information was presented in a logical manner and is quite useful.

5
Member's Profile
I really like this instructor. She is upbeat and informative and keeps you engaged. Great course.

4
Anonymous Author
Instructor is very good. She presents a lot of detailed information in an understandable manner.

5
Anonymous Author
This is a comprehensive and informative course Leader clearly knows this area and presented it

5
Anonymous Author
Great course. Powerful speaker who demonstrated a lot of confidence in the material presented.

5
Anonymous Author
The clear instruction sheds light on what is often a confusing, difficult area of employment.

5
Anonymous Author
As usual, great training done by Ms. Lambert. This course is both educational and enjoyable.

5
Member's Profile
very informative and contained a lot of useful information. Definitely a beneficial class.

5
Member's Profile
Awesome to know that I have a comfortable grasp on Employee versus independent contractor.

5
Anonymous Author
Good materials to review to keep the rules straight especially in light of current events.

5
Anonymous Author
Definitely informative and provides clarity on the difference between the two. Thank you!

5
Member's Profile
Excellent detailed coverage, A good reminder of the importance of classifying employees.

4
Anonymous Author
Several items were repeated unnecessarily...this class could have been a little shorter.

5
Member's Profile
Good summary of the requirements around classifying employees as independent contractors

4
Member's Profile
knowledgeable instructor, hard to read the slides that had copies of the various forms

5
Member's Profile
I do not have any comments on this course. I do not have any comments on this course.

5
Member's Profile
The course represents a vast amount of information and is well presented and covered.

4
Member's Profile
course is excellent - test gets a little into the weeds with some of the questions.

5
Anonymous Author
The course had a lot of useful information and was presented in an interesting way.

5
Member's Profile
It is an elaborate presentation for a relevant topic. Lots of forms are referenced.

4
Anonymous Author
I enjoyed the format of the videos, that they can be watched in several sections.

5
Anonymous Author
This always comes up when filing 1099 and filing out audit schedules. Quick recap

5
Anonymous Author
Very thorough and knowledgeable instructor! A go-to source for any HR department.

5
Anonymous Author
this was a hard course but worth it. Would recomend to anyone for a good lesson.

5
Anonymous Author
Covered the material well and met course objectives. Learned a lot from course.

5
Anonymous Author
great content and well explained as always. Love Vicki's courses. Thank you!

5
Member's Profile
Very comprehensive overview of this topic. Well organized and easy to follow.

5
Member's Profile
The speaker was very informative and used real life examples when possible.

5
Anonymous Author
Great class. I learned a lot about 1099s and correctly classifying workers.

5
Anonymous Author
The course was very informative and to the point, even though it was short.

5
Anonymous Author
The course is super engaging and provides great resources to refer back to.

5
Member's Profile
very informative. great class. the information was helpful for my company

3
Anonymous Author
This was a good class. It was a good refresher. I will use it for work.

5
Anonymous Author
Very good presenter - a lot of useful information presented effectively.

4
Anonymous Author
good informative course to gain understanding of contractors v employees

5
Anonymous Author
This was a great review and very organized in the way it was presented

3
Anonymous Author
Very helpful in today's highly regulated financial services industry.

4
Anonymous Author
This was a good overview of an important topic. Thank you very much!

5
Member's Profile
Great refresher on independent contractor vs employee relationships.

5
Member's Profile
great Info here - really eye opening to how careful you need to be!

4
Member's Profile
The categories that provide the degree of control was very helpful.

5
Anonymous Author
Comprehensive course with lots of thought provoking information.

5
Anonymous Author
This was an informative course. The final exam was challenging.

5
Member's Profile
all of it. very informative since we hire lots of consultants.

5
Anonymous Author
Instructor was spot on and very informative and knowledgeable.

5
Anonymous Author
Vicki pays attention to details, goes over all the key points

5
Member's Profile
Vicki’s courses are always so helpful and easy to follow.

5
Member's Profile
Very informative and helpful information. Great instructor.

5
Member's Profile
Thank you for a hard exam. it took too long. Awesome. nice.

4
Anonymous Author
Always looking for information on independent contractors.

5
Member's Profile
More great information, thank you for the knowledge Vicki.

5
Anonymous Author
Presented in a way that is easy to follow and understand.

5
Member's Profile
Great course packed with useful information on the topic

Anonymous Author
The course was a little long and but good information.

5
Anonymous Author
Well spoken and delivered. Great slides. Very thorough

5
Member's Profile
Information was easy to review - lots of good slides.

5
Anonymous Author
Very good review - the two hours were well worth it!

4
Anonymous Author
Excellent presentation in a user friendly manner !

5
Member's Profile
The material was provided in a very clear manner.

4
Anonymous Author
A helpful guide on employee classification

5
Member's Profile
Great course! Very informative.

5
Anonymous Author
Great course on 1099 status!

5
Member's Profile
Very simple to the point

4
Member's Profile
Very comprehensive course

5
Member's Profile
Excellent presentation.

5
Anonymous Author
it was very in depth

4
Member's Profile
Great subject matter

5
Member's Profile
Awesome! Love it!

5
Member's Profile
excellent course!

5
Member's Profile
Very interesting.

5
Anonymous Author
Very Informative

5
Member's Profile
Great Review.

4
Member's Profile
Good overview

4
Member's Profile
very helpful!

5
Member's Profile
great details

4
Member's Profile
Good topic!

5
Anonymous Author
Very good!!

4
Member's Profile
good stuff

5
Anonymous Author
none

4
Anonymous Author
Nice

5
Anonymous Author
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Prerequisites
Course Complexity: Intermediate

Prerequisite: Exposure to US income taxation

Advanced Preparation: None

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Employee or Independent Contractor?4:28
The Fundamentals
  The Fundamentals: Employee vs. Independent Contractor13:14
Three Factor Test
  Intro to the IRS Three Factor Test3:36
  Behavioral Control 8:40
  Financial Control 10:12
  Type of Relationship9:00
Other Factors
  Pitfalls and Safe Harbors6:50
  IRS Forms11:10
  Wage Hour Law19:26
  Audits and Penalties6:22
  State Unemployment Insurance3:34
CONTINUOUS PLAY
  Employee or Independent Contractor? That is the Question!1:36:32
SUPPORTING MATERIALS
  Slides: Employee or Independent Contractor? That is the Question!PDF
  Employee or Independent Contractor? That is the Question! Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam