Paste a job description and get a documented W-2 or 1099 determination in about two minutes, analyzed against the same IRS and DOL framework an auditor applies. Below the tool you will find how the test actually works, the state rules that override it, and what misclassification costs when it goes wrong.
Classification is decided by the facts of the engagement, not by what the paperwork calls the worker or by whether they have an LLC. A written contract naming someone an independent contractor carries almost no weight if the day to day relationship looks like employment.
boss.
Worker Classification Tool
Confidential 1099 vs W-2 assessment ·
AI online
1. Job description2. Confirm details3. Final result
Step 1 — Job description
Paste the job description
Include role title, duties, pay structure, location, tools, and any contract language. The more detail, the fewer follow-up questions you'll get.
Classification rules differ by state. California and other ABC-test states apply a stricter standard than the federal factors.
0 characters
Reading job description...
Step 2 — Preliminary assessment
Factors determined from the job description
Finalizing classification...
Step 3 — Final classification
Ask a follow-up question
Documentation, conversion risks, edge cases — anything about this placement.
Thinking...
This tool is for internal EOR compliance guidance only and does not constitute legal advice. Consult qualified legal counsel for complex or borderline cases.
Before you engage
Get the classification right the first time
Misclassifying a worker is one of the most expensive mistakes in staffing — back taxes, penalties, and benefits liability that land years later. Paste any job description, tell us the work state, and our AI analyst applies the right test: the full IRS and DOL framework everywhere, plus California's strict ABC rules and other state ABC tests where they govern. It asks only the questions it can't answer from the text and gives you a documented call in minutes.
⚖
The right test for the state — the IRS 14-factor framework everywhere, with hard-stop ABC prong analysis for California (AB5) and other strict ABC states.
⚡
Instant preliminary read — an immediate W-2 / 1099 leaning with a confidence level, before any follow-up.
✓
Smart follow-ups — the tool only asks what the job description doesn't answer, ranked by how much each answer matters.
⚠
Misclassification risks — the specific exposure points for this placement, spelled out in plain English.
🏢
Business-entity signals — LLC status and the worker's own insurance are weighed the way an auditor would weigh them.
💬
Ask anything after — a built-in expert chat for conversion scenarios, paperwork, and edge cases.
What you get
A documented classification you can stand behind: the final W-2 or 1099 call with a confidence level, the governing test named, the factor-by-factor and prong-by-prong analysis, the misclassification risks, and a concrete recommendation — downloadable as a branded PDF or emailed straight to your inbox for the file.
The AI complements — never replaces — review by your BOSS compliance team and qualified counsel.
How Worker Classification Works
The federal test, state rules, and what misclassification costs
The Three Federal Categories
Behavioral control asks who decides how, when, and where the work gets done, and whether the worker receives training or detailed instructions. Financial control asks who supplies the tools, who carries unreimbursed expenses, whether the worker can realize a profit or a loss, and whether they serve other clients. Type of relationship asks about written agreements, benefits, how permanent the arrangement is, and whether the work is core to the hiring business. No single answer decides the case; the weight of the evidence does.
For staffing firms there is a further wrinkle. Several states apply the stricter ABC test, where the second prong asks whether the work sits outside the usual course of the hiring entity’s business. Placing workers is the usual course of a staffing business, which is why so many staffing engagements land on W-2 regardless of how the contract reads. See the full breakdown in our guide to W-2, 1099, and corp to corp engagement.
How do you determine if a worker is 1099 or W-2?
Classification turns on the degree of control the hiring party has over the work. The IRS groups the evidence into three categories: behavioral control (who decides how, when, and where the work is done), financial control (who supplies tools, who can realize a profit or loss, whether the worker serves multiple clients), and the type of relationship (written contracts, benefits, permanence, and whether the work is core to the business). No single factor decides it. The whole picture does.
What is the IRS 20 factor test?
The 20 factor test is the older common law framework the IRS used to weigh employment status, covering things like instructions, training, set hours, work done on premises, payment by the hour versus by the job, and the right to discharge. The IRS has since consolidated those factors into the three categories of behavioral control, financial control, and relationship type, but the underlying questions are the same and auditors still reason through them.
What is the ABC test and where does it apply?
The ABC test is a stricter state-level standard that presumes a worker is an employee unless the hiring party proves all three prongs: the worker is free from control and direction, performs work outside the usual course of the hiring entity’s business, and is customarily engaged in an independently established trade of the same nature. California, Massachusetts, and New Jersey are among the states applying a version of it. Prong B is the one that catches staffing firms, because placing workers is the usual course of the business.
Does having an LLC make someone a 1099 contractor?
No. Forming an LLC or S-corp does not by itself establish independent contractor status. An entity is one piece of evidence about financial control and independent business operation, and auditors do weigh it, but a worker who is directed like an employee is an employee regardless of how they are incorporated. An entity that exists only to paper the engagement is a misclassification case with extra steps.
What are the penalties for misclassifying a worker?
Back federal and state payroll taxes with interest, IRS penalties, retroactive workers’ compensation premiums, unpaid unemployment contributions, and in some states additional per-worker fines. Misclassified workers can also file Form 8919 to report their share of uncollected taxes, which flags the engagement. Willful misclassification raises the exposure further.
Can a 1099 contractor be converted to W-2?
Yes, and it is common when a client requires W-2 engagement or when a review shows the role looks like employment. The worker onboards onto W-2 payroll, often through an employer of record, while any entity they own stays intact for other clients. Handled through an EOR, the conversion typically takes days rather than weeks.
Is this classification tool legal advice?
No. The tool applies the same IRS and DOL framework an auditor would apply and produces a documented determination with the reasoning behind it, which is far stronger than an undocumented decision made from memory. It is compliance guidance, not legal advice, and borderline or high-stakes cases should go to qualified counsel.
When the Answer Is W-2
A W-2 determination is not a dead end for a placement. The employment burden that makes W-2 expensive, payroll taxes, workers’ compensation, unemployment insurance, and multi-state compliance, is exactly what an employer of record carries on your behalf. BOSS becomes the legal employer while you keep the client, the candidate, and the margin. See how the four plans compare, or read how EOR payroll works week to week.
