PHR Human Resources

Category - PHR

What could you use the IRS 20-Factor Test to determine?
  1. How much an employee should receive in a merit-based raise
  2. If someone is an employee or an independent contractor
  3. If an employee is non-exempt
  4. If a position should become part-time based upon job description
Explanation
Answer: B - You could use the IRS 20-Factor Test to determine if someone is an employee or an independent contractor.

Key Takeaway: The IRS 20-Factor Test can be used to determine whether a worker is considered to be an employee or independent contractor. Twenty factors were ultimately identified as providing sufficient proof of the employer-employee relationship. Typically, in order for a worker to be proven as an independent contractor, they must fit at least 11 of the standard factors under the common law tests.
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