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Abstract: 

Because the determination of whether a worker is an employee has important legal consequences, and because misclassification can result in onerous tax and other penalties against foundation employees, officers, and directors, it is important that family foundation managers and advisors understand the worker classification rules. This article comprehensively reviews what foundations must understand in classifying employees as exempt and non-exempt, full or part-time, and employee or independent contractor—including twenty key factors the IRS uses to classify workers under Revenue Ruling 87-41.

Keywords: Civil Rights Act; Family Medical Leave Act; Americans With Disabilities Act; Form 990-PF; Federal Income Tax Witholding

Affiliations:  1: Strasburger & Price, LLP.