I found this helpful website that explains the test that each state in the US uses to classify workers as employees for Independent Contractors.
This is important for homeschool groups that hire and pay workers, especially teachers or tutors, to understand.
https://www.wrapbook.com/blog/worker-classification-tests-by-state
The article compares the two main tests:
Common law test (presumes the worker could be a contractor)
and the
ABC test (presumes the worker is an employee)
The Common Law test is used by the IRS, New York, the District of Columbia, and 17 other states
Currently, the ABC Test is used by the U.S. Department of Labor and 33 states.
Visit https://www.wrapbook.com/blog/worker-classification-tests-by-state and look up your state. Then determine if you pass the tests for your state and the IRS!
If you are unsure how to classify the workers in your homeschool group, my book Paying Workers in a Homeschool Organization can help clear a lot of confusion.
Carol Topp, CPA
HomeschoolCPA.com
