IRS 20 FACTORS
As you are aware, Workers’ Compensation coverage is compulsory in the State of CT. Statute requires employers to provide WC benefits for their employees. As a contractor you may often utilize the services of subcontractors. Are these subs considered employees or independent contractors? To help you determine this we’ve attached a copy of IRS 20 Factors and 3 Categories of Control which addresses Revenue Ruling 87-41.
Some of the 20 factors include
- Set hours of work
- Being employed full time
- Having the proper training
- Have a significant investment.
There are three categories of control factors that judge the degree of control and independence. The three factors are to be used in conjunction with the 20 factors.
- Behavioral Control
- Financial Control
- Relationship Of Parties
Please take the time to read this so you can determine if you are responsible for any work related injury and insurance cost associated with subcontractors working for you.