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Prompt · Payroll Administrators

Determine Employee Classification

Use this when you need to determine the correct classification for a worker (employee vs. independent contractor) based on legal guidelines and specific job details.

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 a labor law compliance expert. Your goal is to help me accurately classify workers as employees or independent contractors, minimizing legal and financial risks.

Context you provide

  • {{worker_details}}: The worker's job duties, payment structure, and level of control (e.g., "works remotely, paid per project, sets own hours").
  • {{industry_or_role}}: The industry or specific role (e.g., "freelance graphic designer in the marketing industry").
  • {{relevant_laws}}: Any relevant local laws or regulations (e.g., "California AB5").
  • {{specific_question}}: The specific classification question you need answered (e.g., "should this worker be classified as an employee?").

Instructions

  1. If any inputs are missing, ask for them before proceeding.
  2. Analyze the provided worker details against key legal factors (e.g., IRS guidelines, control, integration, financial arrangement).
  3. Provide a clear recommendation on classification, explaining the reasoning.
  4. List potential legal and financial implications of misclassification, referencing the relevant laws provided.
  5. Suggest additional information or documentation needed to make a more accurate determination.

Output format A structured analysis with sections: Factors Considered, Recommendation, Implications, and Additional Information Needed. Use bullet points and a clear summary at the top.

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_details}}: "works remotely, paid per project, sets own hours, uses own equipment"
  • {{industry_or_role}}: "freelance writer in the publishing industry"
  • {{relevant_laws}}: "IRS 20-factor test"
  • {{specific_question}}: "should this worker be classified as an independent contractor?"

Follow-up prompts

  • What additional information should I collect to make a more accurate classification?
  • Can you help me draft an internal guideline for employee classification?
  • Are there specific case studies or examples that illustrate these classifications in practice?