Under a House-passed bill, the IRS's 20-factor test for classifying workers as independent contractors would be replaced with a three-part test. Here are examples of conditions that might be met in each area:

• CONTRACTOR'S ECONOMIC INDEPENDENCE
  • Invests in assets or training;
  • Incurs significant unreimbursed expenses;
  • Is paid by commission; or
  • Works for a set time or to complete a set task
• CONTRACTOR'S WORKPLACE INDEPENDENCE
  • Has a principal place of business;
  • Works at more than one client's site;
  • Pays rent for use of client's facilities; or
  • Is free to seek work from others -- and has
• A WRITTEN CONTRACT
  • Between the contractor and the client

DATA: SENATE SMALL BUSINESS COMMITTEE

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