Legal Alert: Employee Misclassification Relief?

more+
less-

The IRS recently announced a new "Voluntary Classification Settlement Program" (VCSP), which allows employers to correct worker classification errors and pay significantly reduced penalties, without having to go through either an examination or complicated administrative procedures.

Proper classification of workers, as employees or independent contractors, is always an issue for both employers and the workers themselves. One of the major effects of classifying an individual as either an employee or a contractor is employment tax liability on the part of the "employer." An employer who finds that employees have been misclassified as contractors may wish to correct that error, but doing so will usually expose the employer to penalties with respect to employment taxes and withholding failures and the employer may not be willing to take on those liabilities, especially for prior years.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  DOL, Independent Contractors, IRS, Misclassification, Penalties, Tax Penalties, VCSP

Published In: Labor & Employment Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© FordHarrison | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »