2 CPE 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
169 Reviews (569 ratings)
Reviews
Anonymous
(Director, Payroll Operations)
As usual, Ms. Lambert did a great job of defining employees versus independent contractors and possible ramifications if employees are misclassified.
Anonymous
()
This class goes in depth into the different test for worker classification. It’s very informative and will be helpful in my job.
Anonymous
()
The course work, documentation and assignments were great aids for my successful completion of this course.
Judith Moscova
(Accountant at N/A)
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.
Anonymous
(VP, WFM and BusTech)
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!
Cammy Dollins
(Payroll Coordinator at Laclede Electric Cooperative)
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.
Anonymous
(Bookkeeper)
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.
Katie Silver
(Payroll Manager, CPP at Breslow Starling)
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!
Kevin Ellis, CPA, CMA
(Instructor of ACCA certification courses at Becker Professional Education)
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.
Katie Broderick
(Payroll Manager at O.C. Tanner)
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.
Wanda Richardson
(Unemployed at Not Applicable)
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.
Lorna Fisher
(Retired Finance Professional with active.. at Retired and enjoying time to pursue pers..)
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.
Anonymous
(Grant Accountant)
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.
Anonymous
()
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.
Peter Morris
(Consultant at Treasury)
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.
Patricia Hines
(Payroll & Benefits Specialist at Kodiak Area Native Association)
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.
Debra Johnson
( at Hagan & Johnson, CPA's ..)
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.
Anna Poselenova
( at Junior's)
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.
Susan Cypert
(Accounting Position at Currently Seeking)
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.
Liza Koftikian
(Business & Tax Consultant at Lisa Koftikian, MBA, MA, CPA, CGMA)
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!
Sandy Atkinson
(Director of Payroll at Integrated Power Services)
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.
Anonymous
()
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.
Anonymous
(PRESIDENT)
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.
Sheryl Powell
(Senior Payroll Associate at CRH Americas Materials)
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.
Anonymous
()
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.
LISA BRZEZINSKI
(Director of FInance at Aspirus)
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.
Wayne Muscarello
(Finance PMO Manager at Direct Energy)
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.
aron vasquez
(Payroll Specialist at California Rural Indian Health Board, in..)
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.
Anonymous
()
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.
Eileen Perrin
(Financial Advisor at First Command)
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.
Anonymous
(HR Director)
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.
Anonymous
(Retired)
This course was informative, and the instructor's approach helped to keep me engaged. The content was spot-on in addressing independent contractor vs employee concerns.
Anonymous
(CPA)
I especially appreciated the discussion of the various levels and agencies of government and the differences in standards for determining status at each level.
christle madding
(payroll manager at lippert components)
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
Anonymous
(Manager)
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.
Anonymous
(Implementation consultant)
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.
Anonymous
(Senior Payroll Specialist)
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.
Tiffany Miller
( at ADP)
Great course. Great refresher for those that are recertifying. This also a good future reference for a refresher or reminder regarding classifications.
Anonymous
(Sr Manager, Payroll & HRIS)
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.
Anonymous
(Sr People Operations Associate)
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.
Anonymous
(CFO)
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.
Stephen Leitz
(Owner and Founder at Workforce 2080 LLC)
Great course. It's always good to come across this as misclassifying a person an employee or independent contractor can have massive complications.
Ara Toroyan
(Director - Financial Planning & Proc.. at NCCI Holdings, Inc.)
I really liked this course. I thought it was well paced, comprehensive and detailed but at the right level for an Intermediate course. Excellent.
Anonymous
()
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.
Anonymous
(Finance Director)
Interesting and well structured. It would also be interesting to hear about this topic in relation to foreign companies' entering the US market.
Kevin Unger
( at American Woodmark)
An outstanding overview of the types of tests required to determine employees vs. independent contractors. Very detailed and very thorough.
Anonymous
(Owner of CS Process Flows - Consulting a..)
This was a long course. Perhaps it could have been split into 2 parts?
HR, Payroll and even Accounts Payable would benefit the most.
Anonymous
()
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.
Anonymous
(Payroll Analyst)
Determining a workers classification can be a challenging process, this course gives good information on the laws regarding the process.
Anonymous
(Payroll Specialist)
This course provides and excellent overview of and Employee vs Independent Contractor. Supporting materials were relevant and concise!
This course really helps to define the difference between an employee and a contractor; including what to do if a mistake is made.
Anonymous
(Payroll Administrator)
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
Anonymous
(Dir of Finance & Controller)
Fantastic course. Brings the basics and more advanced ideas, all with context for application in large corporate environments.
Jennifer Dunn
(Sr. Accountant at Intuit)
The course was well organized and easy to follow. The instructor spoke clearly, and was able to keep the listener's attention.
Anonymous
(Controller)
Course was easy to understand and provided a detailed breakdown to differentiate between Employee or Independent Contractor
Anonymous
(ACCOUNTING MANAGER)
The content of the course is in depth, and covers board of the knowledge that we need to know about independent contractor.
Anonymous
(SVP Corp Compliance & Accounting)
sometimes explanations were too drawn out instead of getting straight to the point. otherwise was a great presenmtation.
Anonymous
()
Very good information. I thought I was pretty knowledgeable of the differences, but there was quite a bit I didn't know.
Anonymous
()
I loved this class and the slides. Very informative and learned some new topics I haven't been taught before. Thank you!
Anonymous
()
This reminds me of the good old CPP study days while prepping for the test. This is an awesome class. Thank you Vicky.
Keith Johnson
(Director SOX Compliance at Waterjet Holdings)
Very comprehensive discussion of this risky area of payroll compliance. I liked the pace and the detail explanations.
Anonymous
(Payroll Consultant)
Wonderful trainer and course - great refresher for anyone that deal with payroll and contractors - highly recommend
Erika Alpiste
( at ADP)
Great refresher! I highly recommend for anyone trying to determine the difference between an employee or contractor.
Janna Williams
( at ZOMALAB)
Good class. Good examples, although some are outdated. I think the pace and amount of time for the class was good.
Sharon Garis
(Buckeye Partners, L.P. at Buckeye Partners, L.P.)
Very Informative and easy to follow. Vickie is a great speaker and explains things that are easy to understand.
Anonymous
(Sr. Accountant)
A thorough review of worker classification by a qualified instructor. Packed with lots of pertinent information.
Monte Smith, CMA
(Chief Executive Officer at Gerding Companies, Inc)
Good coverage of the issue. Especially liked the section that dealt with the perils of misclassifying workers.
Anonymous
(President)
This was very informative. It really showed me the importance of ensuring that proper classification is made
Megan Spencer
(Payroll Coordinator at Clopay Building Products)
I thought this was explained exceptionally well! It breaks the rules down easy enough that all can follow them.
Sealtiel Alvarez Sanchez
(Shared Service Center Manager at Aliaxis)
Course with lot of details and tips regading employee classification. Good reference to IRS SS8 form and tips.
Mary Lawley
(Payroll Training Manager at QUESTCO COMPANIES)
Vicki does a great job explaining the lesson material and using real life examples to put it in perspective.
Anonymous
(Customer Service Rep)
this is a good course for FCP or CPP certificates, great tool also for those needing help to determine status
Sara Malone
(Payroll Manager at CSE W-Industries)
The materials provided covered the topic. The class was informative and well covered the stated objectives.
Catherine Castelow
( at CarMax)
Great course. Extensive information.Vicki always does a great job of applying to real world experiences.
Anonymous
(Director)
This is a great course. The topics are well organized and the overview and examples provided are helpful.
Diana Rosario
( at Specified Technologies Inc.)
Very good, useful information presented in an easy to follow format. Real life examples are appreciated.
Anonymous
()
Provides a great deal of detail and helpful information to help understand what can be a confusing topic.
Brooke Fitzgerald
(Sr Payroll Specialist at Questco)
This course was very helpful I learned a few things that I had forgotten on classification of employees.
Dinita Wilbourn
( at Turnitin, LLC)
This is a great class on the basic fundamentals about the differences between a employee and a contrctor.
Anonymous
(Controller)
All employers who use independent contractors should review this course!! Very informative and useful!
Anonymous
()
Good to review the fundamentals of employee classification. Good material. My thanks to the presenter.
Celeste Houston
(VP of Payoll at Stratus.hr)
Great course. Complicated, but very useful. Great teacher. I love the detail that she uses. Great job!
Anonymous
(N/A)
Very good information for compliance and referring to when in doubt. Good tips also for best practice.
Anonymous
()
This course was very informative and relevant - the documentation will be helpful to use with my team
DAN ZOU
(Payroll manager at Sinopro International Resources Inc.)
good wording, nice examples on the independent contractors, very easy to understand, great webinar!
KIM MILLER
( at Miller's Mowing & More)
Awesome speaker. I learned a lot. This knowledge will continue to be of use in my career. Thanks.
Anonymous
(CFO)
Actually enjoyed this course. I took it as refresher and found it well organized and interesting.
Anonymous
()
This was a good training. The information was presented in a logical manner and is quite useful.
NyRee Ausler
(Payroll Manager at Remitly)
I really like this instructor. She is upbeat and informative and keeps you engaged. Great course.
Anonymous
(Owner)
Instructor is very good. She presents a lot of detailed information in an understandable manner.
Anonymous
(Accounts Manager)
This is a comprehensive and informative course
Leader clearly knows this area and presented it
Anonymous
(Asst Finance Director)
Great course. Powerful speaker who demonstrated a lot of confidence in the material presented.
Anonymous
()
The clear instruction sheds light on what is often a confusing, difficult area of employment.
Anonymous
(Payroll Specialist)
As usual, great training done by Ms. Lambert. This course is both educational and enjoyable.
Allison Justice
( at ADP)
very informative and contained a lot of useful information. Definitely a beneficial class.
Dawn Hickmon
(Payroll Manager at WSSCWater)
Awesome to know that I have a comfortable grasp on Employee versus independent contractor.
Anonymous
()
Good materials to review to keep the rules straight especially in light of current events.
Anonymous
()
Definitely informative and provides clarity on the difference between the two. Thank you!
Deseree Ware
(ESR at ADP)
Excellent detailed coverage, A good reminder of the importance of classifying employees.
Anonymous
(Payroll and Accounting Specialist)
Several items were repeated unnecessarily...this class could have been a little shorter.
Emily Ellison
( at Beachside Ministries)
Good summary of the requirements around classifying employees as independent contractors
Nancy Moreland
(Principal at N. L. Moreland)
knowledgeable instructor, hard to read the slides that had copies of the various forms
Dan Marlow
(Owner at Valor Business Services, LLC)
I do not have any comments on this course.
I do not have any comments on this course.
Martin Smith
(owner at M. Ward Smith, Inc.)
The course represents a vast amount of information and is well presented and covered.
Stephen Scott
(Sourcing Manager at Intuit)
course is excellent - test gets a little into the weeds with some of the questions.
Anonymous
()
The course had a lot of useful information and was presented in an interesting way.
GAUTAM KUMAR PAHARI
(OWNER at G K PAHARI & ASSOCIATES)
It is an elaborate presentation for a relevant topic. Lots of forms are referenced.
Anonymous
(Sr. Accountant/Analyst)
I enjoyed the format of the videos, that they can be watched in several sections.
Anonymous
(Accounting Manager)
This always comes up when filing 1099 and filing out audit schedules. Quick recap
Anonymous
(Payroll Specialist)
Very thorough and knowledgeable instructor! A go-to source for any HR department.
Anonymous
()
this was a hard course but worth it. Would recomend to anyone for a good lesson.
Anonymous
()
Covered the material well and met course objectives. Learned a lot from course.
Anonymous
(Payroll and Benefits Manager)
great content and well explained as always. Love Vicki's courses. Thank you!
Kim Greer
( at Nuclear Waste Partnership LLC)
Very comprehensive overview of this topic. Well organized and easy to follow.
Suzanne Foster
(Payroll Administrator at Martin Marietta)
The speaker was very informative and used real life examples when possible.
Anonymous
()
Great class. I learned a lot about 1099s and correctly classifying workers.
Anonymous
(CPA)
The course was very informative and to the point, even though it was short.
Anonymous
(Payroll Tech Lead)
The course is super engaging and provides great resources to refer back to.
Amy Lyle
( at Denbury Resources)
very informative. great class. the information was helpful for my company
Anonymous
()
This was a good class. It was a good refresher. I will use it for work.
Wanda McClain
( at NUAF)
Good to know the difference between employees and independent contractors
Anonymous
()
Very good presenter - a lot of useful information presented effectively.
Anonymous
()
good informative course to gain understanding of contractors v employees
Anonymous
(Vice President of Finance )
This was a great review and very organized in the way it was presented
Anonymous
(Controller)
Very helpful in today's highly regulated financial services industry.
Anonymous
(-)
This was a good overview of an important topic. Thank you very much!
Christina Wolfe
(Payroll & Benefits Coordinator at Canterbury Park)
Great refresher on independent contractor vs employee relationships.
Eric Cox
(Senior Accountant at Mondo)
great Info here - really eye opening to how careful you need to be!
Dee Madhavpeddi
(Certified Public Accountant at Dee & Associates)
The categories that provide the degree of control was very helpful.
Anonymous
(VP, Finance)
Comprehensive course with lots of thought provoking information.
Anonymous
(Senior Human Resources Systems Analyst)
This was an informative course. The final exam was challenging.
Mary Mulleady
(Contract Manager at na)
all of it. very informative since we hire lots of consultants.
Anonymous
()
Instructor was spot on and very informative and knowledgeable.
Anonymous
()
Vicki pays attention to details, goes over all the key points
Sharonda Hurt
(Assistant Director at CCPS)
Vicki’s courses are always so helpful and easy to follow.
Kimberly Shoop
(VP at Aramark)
Very informative and helpful information. Great instructor.
Amanda Hamner
( at ADP)
Thank you for a hard exam. it took too long. Awesome. nice.
Anonymous
(Payroll Manager)
Always looking for information on independent contractors.
Debbie Hannon
(Consultant at PTG)
More great information, thank you for the knowledge Vicki.
Anonymous
()
Presented in a way that is easy to follow and understand.
Ivan Makarov
(Vice President of Finance at SmugMug)
Great course packed with useful information on the topic
Anonymous
(CFO)
The course was a little long and but good information.
Anonymous
()
Well spoken and delivered. Great slides. Very thorough
Chrystal Baldwin
(New Accounts Specialist at GTM Payroll Services)
Information was easy to review - lots of good slides.
Anonymous
(cfo - consultant)
Very good review - the two hours were well worth it!
Anonymous
(CPA)
Excellent presentation in a user friendly manner !
Lisa Buchanan
(Business Analyst at iSolved)
The material was provided in a very clear manner.
Anonymous
(Chief Financial Officer)
A helpful guide on employee classification
Matt Osmundsen
(Category Finance Director at Energizer Holdings, Inc.)
Great course! Very informative.
Anonymous
(Director of Accounting and Finance)
Great course on 1099 status!
Fatima Mustafa
(Consultant at Self-employed)
Very simple to the point
Larry Swanson
(Sr. Project Manager at Grant Thornton LLP )
Very comprehensive course
Terri Salazar-Rodriguez
(None at None)
Excellent presentation.
Anonymous
(Sourcing Manager, IT & PD Services)
it was very in depth
Tim Philips
(Controller at Self)
Great subject matter
James Mortson
(Chief Financial Officer at SGI Global LLC)
Awesome! Love it!
Candace Oliver
(Independent Consultant at C Oliver)
excellent course!
Raul Cardona
(Senior IT Internal Auidtor at The Cosmopolitan of Las Vegas)
Very interesting.
Anonymous
(Controller)
Very Informative
Craig Ward, CPA
(Chief Financial Officer at Geigerrig)
Great Review.
Irene Math
(CFO at The National September 11 Memorial )
Good overview
Ian Smith
(Accountant at Self-Employed)
very helpful!
Siva Vinay
(Controller at Park n Fly)
great details
Janine Malapitan
(General Accountant II at Netsuite Phils., Inc.)
Good topic!
Anonymous
(None)
Very good!!
Nicholas Mandrus
(Controller at Institute of Contemporary Art, Miami)
good stuff
Anonymous
(Controller)
none
Anonymous
()
Nice
Anonymous
(Chief Financial Officer)
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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
.
Vicki LambertCertified Payroll Professional, CPP
About Illumeo
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Resources
Contact Us
- Email: info@illumeo.com
- Phone: 408-400-3993
- Adress: 1608 W Campbell
- Av #221, Campbell, CA 95008
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