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Payroll & Compliance
Employee Classification Guide
A practical reference guide for correctly classifying workers as employee vs. contractor, exempt vs. non-exempt, and full-time vs. part-time under FLSA and IRS standards.
Download Free TemplateFormat: Text (PDF ready)
What's Included
- IRS Common Law Test: behavioral, financial, and relationship control
- FLSA exempt vs. non-exempt: salary basis, level, and duties tests
- Full-time vs. part-time definitions (FLSA + ACA)
- Common misclassification red flags checklist
- State-specific stricter tests (California, Massachusetts ABC Test)
- Decision framework with yes/no questions for each classification
Best Used For
- HR compliance audits
- Onboarding new contractors or employees
- Finance and legal review of worker arrangements
- Multi-state workforce classification
- DOL or IRS audit preparation