How does the IRS determine responsibility for withholding income taxes related to workers?

The Internal Revenue Service (IRS) determines responsibility for withholding income taxes primarily based on who controls the payment of wages. This reflects the IRS's focus on the relationship between the employer and the worker, emphasizing the concept of control in determining tax obligations.

If an entity has significant authority over the payment processes, such as deciding how much and when a worker is paid, it is likely responsible for withholding and remitting applicable income taxes. This is aligned with the common legal standards for distinguishing between employees and independent contractors – critical in establishing tax responsibilities.

The other considerations, such as the amount of wages paid, the title of the worker, and employer size, may offer context but do not directly determine the obligation for withholding. For instance, wages might vary widely among roles or businesses, and job titles do not inherently designate tax responsibilities. Thus, control over wage payment is the pivotal factor for the IRS in these determinations.