Independent Contractor vs. Employee - 2026 IRS Guidance on Avoiding Worker Misclassification

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Mark Schwartz

Speaker: Mark Schwartz

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HR Compliance Webinar Image
Date
04 March, 2026 (Wednesday)
Time
12:00 PM PDT | 03:00 PM EDT
Duration
90 Minutes

Overview

With states increasingly tightening their rules, getting worker status wrong can cost employers dearly. When someone is labeled a 1099 contractor but later deemed an employee, rising labor expenses can quickly be followed by a federal review that leads to steep back taxes and a payroll assessment capable of seriously destabilizing a business. Even though federal tests for judging these relationships haven’t shifted dramatically, state-level pressure continues to move more roles onto the formal payroll.

So what makes someone an independent contractor? The key is true independence. You must be able to show that the worker is not economically dependent on your business. That means looking at who controls pay structure, tools and equipment, work hours, and the manner and means of performing services. Then you examine the agreement itself: Is there a risk of loss to the worker? Who pays which expenses? Does the worker clearly operate a separate business? The more a contract resembles an employment agreement, the higher the chance you are misclassifying.

In January 2024, the DOL issued its Final Rule on worker status. It moved away from relying only on the IRS common-law approach or state ABC models, and instead finalized a test centered on economic reliance and outward signs of running an independent business, supported by additional factors that may point toward either independence or employment. This webinar explains the Final Rule in detail so you can evaluate your contractors for misclassification risk, document your reasoning, and defend your position during a compliance review. The OBBB Act of 2025 reinstated the ABC test, and you’ll learn how that test aligns with the DOL rule in practice.
 

Why Should You Attend

Join Mark for this essential program for hiring managers, payroll, and A/P teams. With focused training, your company can make sound worker classification decisions and avoid costly misclassification penalties. As a former auditor, Mark emphasizes that doing this work carefully is just as important as complying with your employees.

Who Will Benefit?

  • Payroll and HR managers and staff
  • Hiring personnel
  • Internal/external audit teams
  • A/P managers and staff
  • Personnel executives.

Speaker

Mark Schwartz is an employment tax specialist and has over 15 years of employment tax experience as an independent consultant and as a payroll tax auditor with the State of California. He has managed an audit caseload of 20 ongoing audits, from small home-based businesses to large multi-national corporations. He is expert at defining regulatory and statutory requirements from local, State and Federal government agencies; and helping the average businessperson understand what that mean to their business. He has processed weekly and bi-weekly payroll checks plus tax forms for businesses with hourly as well as exempt workers, multistate operations and a wide variety of benefits.

Mr. Schwartz provides consulting services encompassing payroll processing and payroll tax issues. These include payroll tax minimization, payroll tax compliance reviews, independent contractor studies, use of electronic transfers, deductions, benefits, etc. Mark has represented both clients and the State in front of the State Appeals Board. He understands the complexities of local wage laws, unemployment and disability claims, and other wage and benefit issues affecting your employees.

Mark prides himself on his outstanding customer service skills. He listens attentively to his clientele, helping them bridge the gap between the small business world and Government bureaucracy. He eagerly assists with clients needs, and feels that educating clients toward faster, accurate and more complete payroll processes provides the most value.

Mark is a participating member of the American Payroll Association. He earned his BA and MBA in Finance at Santa Clara University. He has held Certified Internal Auditor and Certified Investment and Derivatives Auditor Credentials. Mark is currently pursuing a Certified Payroll Fundamentals Credential with the American Payroll Association.

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