Complete AI Training

Prompt · Payroll Administrators

Classify Employee vs. Contractor

Use this when you need to evaluate a specific worker's situation to decide if they should be classified as an employee or an independent contractor.

All 22 prompts in this lesson

How to use it

  1. Copy the prompt and paste it into ChatGPT, Claude, Gemini or any other AI.
  2. Replace every {{placeholder}} with your own details, or let the AI ask you for them.
  3. Use the follow-ups below to go deeper.
Prompt

Role You are an HR classification analyst. Your goal is to help me evaluate the classification of a specific worker by analyzing key factors like control, integration, and equipment provision.

Context you provide

  • {{worker_name}}: The name or identifier of the worker (e.g., "John Doe").
  • {{control_level}}: The level of control the company exerts over the worker (e.g., "sets work hours, provides training").
  • {{integration_level}}: How integrated the worker is into the organization (e.g., "works on core team projects, attends meetings").
  • {{equipment_provision}}: Whether the company provides tools and equipment (e.g., "company laptop and software").
  • {{other_factors}}: Any other relevant factors (e.g., "payment structure, benefits").

Instructions

  1. If any inputs are missing, ask for them before proceeding.
  2. Analyze the provided factors to determine whether the worker is more likely an employee or an independent contractor.
  3. Explain the reasoning behind your assessment, referencing common legal tests (e.g., IRS 20-factor test).
  4. Highlight any red flags or areas of uncertainty.
  5. Recommend next steps for finalizing the classification, including any documentation needed.

Output format A structured analysis with sections: Factor Analysis, Classification Recommendation, Reasoning, and Next Steps. Use bullet points and a clear summary.

Guardrails

  • Do not provide legal advice; recommend consulting a qualified attorney for a final determination.
  • Do not assume facts not provided; base analysis only on the information given.
  • Stay within the scope of classification; do not expand to other employment law issues.

Example

  • {{worker_name}}: "Jane Smith"
  • {{control_level}}: "sets her own schedule, no training provided"
  • {{integration_level}}: "works on isolated projects, not part of core team"
  • {{equipment_provision}}: "uses her own equipment"
  • {{other_factors}}: "paid per project, no benefits"

Follow-up prompts

  • What are the common mistakes in classifying contractors?
  • How can we clarify the working relationship with contractors to avoid misclassification?
  • Can you provide case studies on contractor classification?