• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

TWC to share information on employment tax schemes with IRS

by on
in Compensation and Benefits,Human Resources,Small Business Tax,Small Business Tax Deduction Strategies

The Texas Workforce Commission (TWC) recently agreed to tell the IRS about employers that fail to properly pay state unemployment insurance taxes.

The TWC joins 28 other state work force agencies in entering the new initiative, which expands on existing data-sharing efforts between federal and state agencies. The Questionable Employment Tax Practices (QETP) initiative allows the IRS and state agencies to exchange data in centralized and uniform ways to identify tax practices designed to help employers avoid paying employment or unemployment taxes.

The QETP agreement, the first of its kind, also encourages coordinated outreach and education activities to help businesses meet their tax responsibilities.

Questionable practices that the initiative looks for include:

  • Businesses registered with the federal government, but not with the state
  • Companies registered at the federal level as having employees, but not at the state level
  • Misclassification of employees as independent contractors rather than employees

Final note: Now’s the time to review how you classify employees—before the IRS or the TWC comes to investigate.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/3979/twc-to-share-information-on-employment-tax-schemes-with-irs "

Leave a Comment