Which of the following is not a part of the ABC test?

The ABC test is a standard used to determine whether a worker is classified as an independent contractor or an employee. This test consists of three criteria that must be met for a worker to be considered an independent contractor. Understanding the components of the ABC test is key to applying it correctly.

The correct answer relates to the criterion of "Risk of loss." In the context of the ABC test, the first factor looks at whether the worker is free from control or direction in the work they perform. The second factor examines whether the worker performs services that are outside the usual course of the business for which the services are performed. Lastly, the third factor assesses whether the worker is engaged in an independent trade or business.

"Risk of loss" does not form part of the ABC test criteria. While it may be a relevant factor in the broader context of classifying workers or when evaluating business relationships, it does not specifically apply to the stipulations required in the ABC test. By recognizing this distinction, one can better understand how to apply the ABC test for correct worker classification and compliance with labor laws.