Ep 60 ~ Decoding the DOL’s New Independent Contractor Rule

The Bookkeeping with a Purpose Podcast- Bookkeeping, Christian Entrepreneur, Church finances, Clergy Taxes, Minister payroll, Biblical mindset,

NOTE: The Department of Labor (DOL) and the Internal Revenue Service (IRS) use different criteria for determining whether a worker is an employee or independent contractor, and the criteria serve different purposes.

The DOLs criteria are primarily used for determining eligibility for wage and hourly protections under the Fair Labor Standards Act (FLSA), ( which we covered in Ep 57) while the IRS’s 20-factor control test is used for tax purposes.

On January 9th, 2024, the DOL unveiled its final rule, which fundamentally alters how businesses/organizations (incl. churches) determine whether a worker is an employee or an independent contractor. Effective March 11th, 2024, this rule replaces the 2021 independent contractor rule issued under former President Donald Trump, introducing a six-factor test to evaluate worker classification.

But what exactly are these six factors, and how do they impact churches and workers alike? We break it down in this episode.

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