2 results for tag: Misclassified Workers


Change Independent Contractors into Employees Trouble-Free

You've read horror stories about how the IRS audits business owners and deems their 1099 independent contractors W-2 employees—and then assesses tens (or hundreds) of thousands of dollars in back payroll taxes, interest, and penalties. Are you one of those horror stories? Okay, let’s say you are one of them. You know that you are an IRS target because you have workers who really should be employees, but you treat them as independent contractors. And you are afraid that if you change now, the IRS will see that change, audit your prior years, and charge big bucks for your mistake. What should you do? Keep the workers as independent contra...

Owe Taxes for Misclassified Workers? Section 530 to the Rescue!

Are you living every small business owner’s worst nightmare: an IRS audit? Okay, that’s bad. But even worse, suppose the IRS asserts that many of your 1099 independent contractors are W-2 Employees. Now you owe tens of thousands of dollars in unpaid payroll taxes! What are you going to do? Before you throw in the towel and make a panic-stricken call to your friendly neighborhood bankruptcy lawyer, hold on. There may be a way out! You may qualify for the safe-harbor provisions of Section 530. Classifying Your Workers: Employees or Independent Contractors? As a business owner, you are obligated to collect and remit payroll taxes for ...