Tax Treatment of Employees and Self-Employed Persons by the Internal Revenue Service: Problems and Solutions
GGD-77-88
Published: Nov 21, 1977. Publicly Released: Nov 21, 1977.
Skip to Highlights
Highlights
The definition of who is an employee and who is self-employed is not clear. The definition is generally based on common law in which the determining factor is the degree of control, or right of control, the employer has over the worker. If workers are employees, their employers must withhold and pay to the government income and social security taxes, contribute to the social security fund, and, in most instances, pay an unemployment insurance tax.
Full Report
Office of Public Affairs
Topics
EmploymentPaymentsSocial security taxesStatutory lawTaxpayersEmployeesSelf-employedTaxesCase lawIndependent contractors