Contractor Classification Risk Assessment
PLANNING TO HIRE A 1099 CONTRACTOR? CHECK THE RISK FIRST.
Mitchell Martin has partnered with Independently to help organizations better understand and manage independent contractor classification risk.
Start with our free Contractor Classification Risk Assessment below for a quick look at potential risk factors. Through our partnership with Independently, we’re also offering a limited number of complimentary contractor verification packages for organizations that want to take the next step.
CHECK YOUR CONTRACTOR CLASSIFICATION RISK
Answer the questions below to get your initial risk assessment.
Type a number or drag the slider. Change these any time to see the cost move.
Let's get started.
Answer a few questions and you'll see your risk and what a mistake could cost here.
What the federal government alone could collect if this engagement is later found to be misclassified
$0
This is only the federal share. Your state collects its own money on top of this, and in many states the state total is larger than the federal total. The full cost of getting this wrong is the federal number plus everything your state adds.
Parts of this plan that would look like employment to a regulator:
Things to confirm before this person starts
See the full breakdown
What your state can add on top
These vary by state and cannot be estimated in advance, which is exactly why they are dangerous to ignore:
- Back payments into the state unemployment insurance fund, with interest
- State income tax the company should have withheld from every paycheck
- Workers compensation premiums the company never paid, plus penalties for going without coverage
- Damages under state wage laws, which in some states double or triple what the worker is owed
- Per-worker fines, and in some states stop-work orders that halt a project until the issue is resolved
Sources and legal notice
- Internal Revenue Service, Topic No. 751, Social Security and Medicare Withholding Rates, 2026: irs.gov/taxtopics/tc751
- Internal Revenue Service, Publication 4341, reduced assessment rates under IRC Section 3509: irs.gov/pub/irs-pdf/p4341.pdf
- U.S. Department of Labor, Wage and Hour Division, Civil Money Penalty Inflation Adjustments, 2026: dol.gov/agencies/whd/resources/penalties
- U.S. Department of Labor, Wages and the Fair Labor Standards Act: dol.gov/agencies/whd/flsa
- State test classifications: Independent Contractor Tests, State by State Guide, ABLEMKR, 2026: ablemkr.com/independent-contractor-tests-state-by-state-guide. The rules that apply can differ within a single state depending on which agency is asking and which law is involved.
Sources verified as of July 2026.
This tool provides an educational estimate. It does not provide legal advice, a legal determination, or a finding about the status of any worker or planned engagement. Worker classification depends on the full facts of each relationship and on the laws of the applicable jurisdiction, which change over time. Results should be reviewed with qualified employment counsel before any classification decision is made.
Educational estimate. Not legal advice.
WANT A MORE COMPLETE REVIEW?
Your risk assessment is a starting point. Through our partnership with Independently, we’re offering a limited number of complimentary contractor verification packages for a more thorough review of your contractor engagements.
Independently provides contractor classification verification and ongoing compliance solutions to help organizations confidently engage and manage independent contractors.
Need another way to engage talent?
If an independent contractor arrangement isn’t the right fit, Mitchell Martin can help with contract staffing, payrolling, and other workforce solutions that give you the flexibility you need while reducing classification concerns.