• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

If your organization uses independent contractors, watch out: Starting in February, the IRS will begin intensive audits of 6,000 randomly selected employers. One of the key targets: Determining whether employers are improperly misclassifying workers as independent contractors to save on taxes and legal risks.

The National Research Program (NRP) audits will generate the IRS’s first statistical snapshot of employment tax compliance since 1984. The audits will stretch across all industries and company sizes.

Federal officials believe the recession has encouraged more employers to classify members of their workforce—often incorrectly—as independent contractors. Classifying workers as independent contractors can save money for the employer, as they don’t have to pay for contractors’ benefits or for the employers’ half of the Social Security and Medicare taxes on workers’ wages.

The fault line in the great Employee or Contrac...(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

Leave a Comment