A construction worker you hired claims to be an independent contractor but works exclusively for your company, uses your tools, and follows your daily schedule. According to IRS guidelines, this worker should most likely be classified as:
Correct Answer
C) An employee because you control the means and methods of their work
The IRS uses behavioral control, financial control, and relationship type to determine worker classification. When an employer controls how, when, and where work is performed and provides tools, the worker is typically classified as an employee.
Why This Is the Correct Answer
Option B is correct because the IRS uses three main criteria to determine worker classification: behavioral control, financial control, and relationship type. In this scenario, the contractor demonstrates clear behavioral control indicators - the company controls when they work (daily schedule), how they work (provides tools), and where they work (exclusively for one company). These factors strongly indicate an employee relationship rather than independent contractor status, regardless of what the worker claims or prefers.
Why the Other Options Are Wrong
Option A: An independent contractor because they work in construction
Industry type alone does not determine worker classification. Construction workers can be either employees or independent contractors depending on the actual control and relationship factors, not simply because they work in construction.
Option B: An employee only if they work more than 40 hours per week
Worker preference or self-designation does not determine IRS classification. The actual working relationship and control factors override any verbal agreements or worker requests for specific classification status.
Option D: An independent contractor because they requested that classification
Hours worked per week is not a determining factor for IRS worker classification. The classification depends on control factors, not the quantity of hours worked or overtime thresholds.
Memory Technique
Use 'BITE' - Behavioral control, Investment/financial control, Tools provided, Exclusive work = Employee status
Reference Hint
Florida Building Code Chapter 1, Section 105 - Permits and Licensing Requirements, or IRS Publication 15-A Employer's Supplemental Tax Guide
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