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Does the Department of Labor (DOL) use the same standard as the Internal Revenue Service (IRS) to determine worker status?

1) True
2) False

1 Answer

4 votes

Final answer:

The "statement "Does the Department of Labor (DOL) use the same standard as the Internal Revenue Service (IRS) to determine worker status" is false. the correct answer is 2.

Step-by-step explanation:

The Department of Labor (DOL) and the Internal Revenue Service (IRS) use different standards to determine worker status.

The DOL uses a multifactor test known as the Economic Reality Test, which looks at several factors including the extent to which the worker's services are an integral part of the employer's business, the permanency of the work, and the degree of control the employer has over the worker.

On the other hand, the IRS uses a common law test called the Right to Control Test, which focuses on the degree of control the employer has over the worker's behavior, the worker's financial aspects of the job, and the relationship between the parties. the correct answer is 2.

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