The definitions of “employee” and “independent contractor” can and do differ depending upon who is asking the question and for what purpose.
How can one navigate the complex labyrinth of tests for contractor v. employee? Is there a single idea that runs through all of them? The answer, fortunately is yes.
Joining forces, the U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) recently announced a Memorandum of Understanding (MOU) to coordinate efforts to resolve employer practices of misclassifying employees as independent contractors.