2026 1099 Contractor vs. W-2 Employee Scorecard

Score any worker against the 6-factor DOL test and state ABC rules, then download a signed classification memo.

6-Factor DOL TestChecks control, profit/loss opportunity, tools, and permanence.

State ABC OverrideFlags strict Prong B rules in CA, MA, NJ, IL, and WA.

Section 3509 Safe HarborCalculates reduced IRS penalty rates when 1099-NECs were filed.

Worker Role, Annual Compensation & 6-Factor Classification Audit

Contractor / Worker Role Title

Annual Payments to Worker ($)

State Test Regime

1. Opportunity for Profit or Loss

2. Tools, Equipment & Capital Investment

3. Degree of Permanence & Exclusivity

4. Nature & Degree of Behavioral Control

5. Integral Part of Payer's Core Business (Prong B)

6. Written IC Agreement, W-9 & COI on File

Attach to vendor W-9 and Subcontractor Agreement

Classification Score & Audit Determination

6-Factor Independence Score (Out of 100)	100 / 100
Classification Audit Risk Rating	LOW RISK (Valid 1099-NEC)
Prong B / ABC Test Status	Passes Independent Trade Standard

IRC § 3509(a) Exposure (If 1099-NEC WAS Timely Filed ~10.68%)	$5,126
IRC § 3509(b) Exposure (If 1099-NEC Was NOT Filed ~20.46%)	$9,821
Penalty Shield Created Solely by Filing Timely 1099-NEC	Saves $4,695