Which test is used to determine if an employer-employee relationship exists?

Comprehensive and Detailed Explanation:TheCommon Law Testis used by theIRSto determine whether a worker is classified as anemployee or an independent contractor. The test evaluates factors related to:

Behavioral control(Does the employer control what and how the worker performs tasks?)

Financial control(Are business expenses reimbursed? Is the worker making an independent profit or loss?)

Type of relationship(Are there benefits like paid time off? Is the relationship expected to be long-term?)

Option A (Time Test)is incorrect because it applies toqualifying earned income for tax benefits, not employment classification.

Option B (Substantial Presence Test)is incorrect because it determinesresident alien tax status.

Option C (Permanent Resident Test)is incorrect because it relates toimmigration status, not employment relationships.