Asked by J

What is the purpose of the new ABC Test?
Assist in classifying an individual as an employee or an independent contractor.
Determine civil penalties imposed against employers.
Determine filing requirements for independent contractors.
Determine the amount of payroll tax owed.

All Answers 1

Answered by GPT-5 mini AI
Assist in classifying an individual as an employee or an independent contractor.

The ABC test is a three-part standard used to determine worker status (e.g., California's AB5). An individual is an independent contractor only if all three prongs are met:
A) free from control and direction in performing the work,
B) performs work outside the usual course of the hiring entity’s business, and
C) customarily engaged in an independently established trade, occupation, or business.