Calculators
Contractor or Employee Quiz
Is your worker an independent contractor or an employee? Take the IRS 20-factor quiz, get a verdict and a misclassification risk score in two minutes.
Last update
October 16, 2026
Paying someone as a 1099 contractor when the IRS sees an employee is one of the most expensive mistakes a small business can make: back payroll taxes, penalties, interest and sometimes benefits and overtime owed. The IRS looks at who controls the work. Answer the 20 questions below for one worker and the quiz weighs the answers the way the IRS does. If you are near the line, read how HR outsourcing handles classification or use the employee cost calculator to see what converting a contractor would cost.
Misclassification means back taxes, penalties and benefits liability. CoAd's HR team reviews classification and runs contractors and employees on one platform.
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