Sunday, October 02, 2011

Employee or Independent Contractor? Feds and States Join Forces to Fight Worker Misclassification

The use of independent contractors are a flexible option for employing workers and a legitimate way to avoid some payroll tax obligations. But government authorities are on the lookout for employers who misclassify their workers, when they are really employees.
Read about the the most recent government efforts to correct this type of activity, whether it was done accidentally or on purpose.

However, a new government (IRS) program allows employers to reclassify their employees on a voluntary basis, drastically reducing any back taxes or penalties owed on the status change. But only if you go to them first.
For more details on what steps you can take to manage this issue, see the story on correcting worker misclassification.

IRS Makes Voluntary Reclassification of Workers Less Taxing

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