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.
The article compares the two main tests:
Common law test (presumes the worker could be a contractor)
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, HomeschoolCPA can help:
My book Paying Workers in a Homeschool Organization can help clear a lot of confusion, but perhaps you want to discuss your particular situation in a private, individual phone consultation.
I offer phone consultations to help you determine if your homeschool organization’s workers are employees or independent contractors. The phone call will be followed up with an email containing a fact-based determination and information to help you take the next steps.
To request a consultation, please contact me. I’m happy to help and relieve any anxiety you have about this confusing topic.
Carol Topp, CPA
Helping Homeschool Leaders