Independent Contractor Test in Indiana
Indiana uses an ABC test for unemployment insurance: the work must be free from control and outside the usual course of business, and the worker must have an independent trade or be a commission only sales agent.
Last checked . General information, not legal advice.
Indiana at a glance
- Test for unemployment insurance
- ABC test
- Part B requires work outside the usual course of business; part C can be met by a commission only sales agent.
- ABC test for unemployment
- Yes
The rules in Indiana
Which test does Indiana use to classify independent contractors for unemployment insurance?
Test for unemployment insurance in Indiana: ABC test. Part B requires work outside the usual course of business; part C can be met by a commission only sales agent.
Does Indiana apply the ABC test for unemployment insurance?
Yes. ABC test for unemployment in Indiana: yes.
Where do the Indiana independent contractor tests come from?
The rules above come from Ind. Code 22-4-8-1(b). Each source is linked on this page. We last checked them in October 2026.
What this means in practice
Write down how the working relationship actually operates: who sets the hours, who supplies tools, whether the worker serves other clients and whether the work is part of the business's usual line of work. These facts drive every classification test, and a written independent contractor agreement helps only if it matches them.
Check each law separately. A worker can be a contractor under one statute and an employee under another, because wage laws, unemployment insurance, workers' compensation and tax rules may each use their own test. Federal law also applies its own tests alongside the state rules.
Misclassification can lead to back wages, unpaid unemployment contributions, interest and penalties. If a role is close to the line, read the statute and agency guidance for the state where the work is performed, or ask the state labor or unemployment agency how it applies its test.
General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.
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