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Contractor vs Employee Classifier

Worker misclassification is one of the most expensive mistakes a WA business can make. Answer 12 questions about your working relationship and get an instant risk assessment — IRS + WA L&I standards.

Question 1 of 12

Factor Breakdown

💸 What Misclassification Costs in WA

IRS Back Taxes

Up to 41.5%

of misclassified wages (employer + employee share + penalties)

WA L&I Back Premiums

50% penalty

on all unpaid workers' comp premiums + interest

WA ESD (Unemployment)

$1,000+

per misclassified worker in UI back taxes + penalties

DOR (B&O Tax)

Retroactive

B&O tax on contractor payments reclassified as wages

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Educational tool only — not legal advice. Worker classification depends on the totality of circumstances, not any single factor. This tool approximates IRS Common Law Test and WA L&I's "A-B-C" test results but cannot capture every nuance. If you have classification questions about a specific worker, consult a professional before L&I or the IRS does it for you.

Not Sure About Your Classifications?

Steadfast Accounting reviews your 1099 contractors, flags misclassification risk, helps with proper documentation, and gets your payroll services and L&I filings right the first time. Need a full classification audit? We've got you.

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