Our advice: Don’t surrender quickly if the IRS challenges your worker classifications. It’s an uphill battle, but you can prevail if you have a legitimate gripe and you stick to your guns. Here’s some ammunition for your battle ahead.
What’s at stake?
When a worker is classified as an “employee,” you must withhold federal income tax and the employee’s half of Social Security and Medicare taxes (FICA) from the paycheck.
Even worse: You must pay the employer’s half of the FICA tax and the federal unemployment tax (FUTA). Finally, you must issue a Form W-2 for the employee’s wages earned and send a copy to the I...(register to read more)
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Small Business Tax Deduction Strategies
- Track pay raises as defense to retaliation claims
- Government agencies: Ensure last-chance agreements allow for pre-termination hearings
- Tell managers: You must let disabled applicants prove merit
- Charities appear on IRS 'hit list'