Run Worker Classification (1099 vs W-2) Audit Checklist — Free

Audit Scope and Worker Profile

Worker name or unique engagement identifier recorded critical (required)

Business unit, department, or client assignment identified critical (required)

Engagement start date and current status documented critical (required)

Worker role and primary services clearly described critical (required)

Prior classification history reviewed for this worker or role

Yes No N/A

Control and Direction Factors

Business controls the worker's schedule, hours, or required availability critical (required)

Yes No N/A

Business provides detailed instructions on how the work must be performed critical (required)

Yes No N/A

Worker is supervised, reviewed, or approved like an employee critical (required)

Yes No N/A

Worker can determine the sequence, methods, and tools used to complete the work

Yes No N/A

Worker may perform services for other clients without restriction

Yes No N/A

Financial Risk and Business Independence

Worker invoices the business for services rendered critical (required)

Yes No N/A

Payment is tied to deliverables, milestones, or project scope rather than hourly wages critical (required)

Yes No N/A

Worker supplies and maintains their own tools, equipment, or software

Yes No N/A

Worker has a meaningful opportunity for profit or loss

Yes No N/A

Business reimburses expenses only under a documented contractor policy

Yes No N/A

Integration Into the Business

Services are part of the business's core operations or regular service offering critical (required)

Yes No N/A

Worker uses a company email, badge, or internal directory listing consistent with employee status

Yes No N/A

Worker is included in employee meetings, org charts, or internal management chains

Yes No N/A

Worker is presented to customers or the public as part of the company workforce

Yes No N/A

Contract Terms and Supporting Documentation

Signed independent contractor agreement is on file critical (required)

Yes No N/A

Agreement includes scope of work, deliverables, and contractor autonomy language critical (required)

Yes No N/A

W-9 or equivalent tax documentation is on file for contractor classification critical (required)

Yes No N/A

Classification rationale or decision memo is documented and current

Yes No N/A

Any prior reclassification, legal review, or HR exception is documented

Yes No N/A

Payroll, Tax, and Remediation Review

Worker is paid through the correct channel for the documented classification critical (required)

Yes No N/A

Appropriate tax reporting form is planned or filed for the engagement critical (required)

Potential misclassification exposure has been escalated to HR, payroll, legal, or tax review

Yes No N/A

Corrective action plan documented for any deficiencies or non-conformances

Yes No N/A

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Run: Worker Classification (1099 vs W-2) Audit Checklist

Audit Scope and Worker Profile

Control and Direction Factors

Financial Risk and Business Independence

Integration Into the Business

Contract Terms and Supporting Documentation

Payroll, Tax, and Remediation Review

Get your results