Common-law employee
A worker the IRS classifies as an employee under the common-law right-of-control test, distinct from independent contractors.
Definition
A common-law employee is anyone who performs services for an employer who has the right to control what work is done and how it is done. A Solo 401(k) sponsor that hires a common-law employee who works 1,000+ hours per year and is age 21+ generally must offer plan eligibility, ending the one-participant status that allows Form 5500-EZ.