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This course will serve as a sound basis to assist human resources, payroll or finance professionals in determining how to properly classify a worker as an independent contractor or an employee.

To start, we will examine the requirements needed to determine if a worker is an independent contractor or an employee under various federal and state regulations, and will cover:

  • Basic characteristics of both types of workers
  • The IRS’ three categories to determine whether a worker can be classified as an independent contractor under the IRS rules
  • Requirements for each type of worker under the wage and hour rules
  • The IRS form that can be used to help determine the worker’s status

We will also 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 will discuss various examples of state regulations as they pertain to worker classification. You will come away from this course with a solid understanding of the requirements for classifying workers as employees vs. independent contractors.

Learning Objectives

  • 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
  • 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
  • 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: September 18, 2018

62 Reviews (176 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
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 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
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
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!
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
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
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
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.
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.
5
Anonymous Author
Fantastic course. Brings the basics and more advanced ideas, all with context for application in large corporate environments.
4
Anonymous Author
sometimes explanations were too drawn out instead of getting straight to the point. otherwise was a great presenmtation.
5
Member's Profile
Very comprehensive discussion of this risky area of payroll compliance. I liked the pace and the detail explanations.
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.
5
Anonymous Author
This was very informative. It really showed me the importance of ensuring that proper classification is made
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.
5
Member's Profile
Very good, useful information presented in an easy to follow format. Real life examples are appreciated.
5
Anonymous Author
Actually enjoyed this course. I took it as refresher and found it well organized and interesting.
5
Member's Profile
I really like this instructor. She is upbeat and informative and keeps you engaged. Great course.
5
Anonymous Author
This is a comprehensive and informative course Leader clearly knows this area and presented it
4
Anonymous Author
Instructor is very good. She presents a lot of detailed information in an understandable manner.
4
Member's Profile
knowledgeable instructor, hard to read the slides that had copies of the various forms
4
Member's Profile
course is excellent - test gets a little into the weeds with some of the questions.
4
Anonymous Author
I enjoyed the format of the videos, that they can be watched in several sections.
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
Member's Profile
The categories that provide the degree of control was very helpful.
5
Member's Profile
great Info here - really eye opening to how careful you need to be!
5
Anonymous Author
Comprehensive course with lots of thought provoking information.
5
Member's Profile
all of it. very informative since we hire lots of consultants.
5
Anonymous Author
Vicki pays attention to details, goes over all the key points
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
Very good review - the two hours were well worth it!
4
Anonymous Author
Excellent presentation in a user friendly 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
Very interesting.
5
Member's Profile
excellent course!
5
Anonymous Author
Very Informative
5
Member's Profile
Great Review.
4
Member's Profile
Good overview
5
Member's Profile
great details
4
Member's Profile
very helpful!
5
Anonymous Author
Very good!!
4
Member's Profile
Good topic!
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 .

1 QuestionCourse Questions and Answers

Member's Profile

Question:

Which of the following is NOT a characteristic of an employee?

Response:

Sets own order and sequence of work

Should have chosen
Works for more than one person or firm

Services are performed permanently

Wrong
Offers services to the general public

Feedback:
Incorrect: This is characteristic of an employee.

I confused to this answer. our club has many employees who work for different companies. two or three with different schedule. even I work for three companies in different time. how this (above is answer is correct?)

Course Syllabus
INTRODUCTION AND OVERVIEW
The Fundamentals
  24:00The Fundamentals: Employee vs. Independent Contractor
Three Factor Test
  11:14Behavioral Control
  11:53Financial Control
  9:48Type of Relationship
SS-8 and Other Factors
  13:53IRS Form SS-8
  13:33Other Factors for Consideration
Conclusion
  28:57Misclassifying Workers
CONTINUOUS PLAY
  1:59:11Employee or Independent Contractor? That is the Question!
SUPPORTING MATERIALS
  PDFSlides: Employee or Independent Contractor?
  PDFEmployee or Independent Contractor Glossary/Index
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM