Independent contractor-employee distinction in the United States

Taxation in the United States
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The United States maintains a legal distinction between independent contractors and employees for tax treatment and for the Fair Labor Standards Act (FLSA). The distinction has been contested since the passage of the FLSA, with employers often attempting the misclassification of employees as independent contractors. Similar practices exist in other countries, where is often known as false self-employment.

The U.S. Government Accountability Office (GAO) reports that the IRS claims to lose millions of dollars in uncollected payroll, social security, Medicare and unemployment insurance taxes because of misclassification of independent contractors by taxpayers.