Use dotted terms for definitions. You can also browse the glossary.
Before you decide
- Federal tax classification and state workers compensation are separate tests.
- Part-time work and a contractor label do not settle status.
- Collect facts and current state guidance before deciding an exemption applies.
List who performs the work
Record maintenance staff, leasing personnel, resident managers, casual labor, contractors and subcontractors. Describe who directs the work, supplies tools, sets schedules and pays whom. Include the states where work occurs and any work on properties owned by separate entities.
The IRS explains that substance and control matter under federal common-law employment rules. That source does not determine state workers compensation obligations. Avoid a national employee-count threshold or blanket owner exemption.
Prepare the classification inquiry
| Question | Record |
|---|---|
| Who controls how work is performed? | Contract and actual practice |
| Which entity pays and supervises? | Payroll and vendor records |
| Where is work performed? | Properties and travel locations |
| Are subcontractors used? | Contracts and current insurance evidence |
| Is an exemption claimed? | Current state authority and supporting document |
Worked scenario: recurring maintenance
An owner pays a maintenance worker as a vendor, provides equipment and sets a regular schedule across several buildings. The payment label alone should not be treated as a final classification. Seek review using the actual relationship and applicable state rules.
Ask the insurance partner how payroll, class codes, subcontractor evidence, audits and work in multiple states are handled. A general liability policy is not a substitute for confirming the employee-injury arrangement.
Maintain the file
Keep current coverage or exemption evidence, audit records and changes in operations. Recheck when a vendor hires staff, a worker changes duties or the business expands across state lines.
Use the relevant state labor or workers compensation authority for legal requirements, and the state insurance regulator for insurance-license or consumer resources. Do not import an Illinois rule into a national property article.
Sources & scope
- Internal Revenue Service: Employee under common-law rules
Federal employment-tax classification context only. Does not establish state workers compensation status or exemptions.
- NAIC: Small business insurance
General property, liability and package-policy definitions. Product eligibility and exclusions require the actual form.
- NAIC: State insurance department directory
Official starting point for jurisdiction-specific license checks and complaint resources.
Sources checked October 24, 2026. General descriptions do not replace the policy, endorsements, declarations or an insurer’s coverage determination. Examples are hypothetical unless explicitly identified otherwise.
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