Who is an employee?

Who is an employee?

An employee is either

• a person who performs services subject to the legal control and direction of an employer, or
• an Illinois resident who receives payments on which federal income tax is withheld by the employer.

Note: An individual who has a proprietary interest in a business that he or she can legally sell, give away, or operate without hindrance of any other party is self-employed. These individuals are not subject to tax withholding requirements.

See IRS Publication 15 Circular E, Employer’s Tax Guide, for more information.

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