Common-law Employee

Common-law Employee means, under common law rules, every individual who performs services subject to the will and control of an employer, both as to what must be done and as to how it must be done. An employer-employee relationship exists as long as the employer has the legal right to control both the method and the result of the services. The employer supplies tools and a place to work and has the right to discharge the employee.

For employment tax purposes, no distinction is made between classes of employees. An employer is required to withhold and pay taxes on wages paid to common-law employees.

See also other Tax Terms and Definitions in U.S.A.

employee; statutory employee.