What is Employment Status?

Employment status refers to the relationship between an employer and the individual providing labor or services to the company. In the United States (U.S.), employment status is used to refer to the type of implicit or written contract between an employer and an employee.

Examples of employment status.

Examples of employment status include full-time employment, part-time employment, temporary or contractual employment, or interns or apprentices. Employment status designation in other countries, like Canada, determines an individual’s guaranteed rights and the employer’s responsibilities.

What are the categories of employment status?

There are three main categories of employment status: employee, worker, and self-employed individual. In the U.S., the Internal Revenue Service (IRS) classifies workers as employees or non-employees for tax purposes based on three criteria. Understanding employment status is important for employers to ensure compliance with regulations and to provide workers with the appropriate benefits and rights.