IRSPosted: September 27, 2011
The IRS has a new program allowing employers to reclassify independent contractors as employees for payroll tax purposes. Click here to read more. Thanks to Lutz and Company for the info.
Some employers call their workers “independent contractors” to save some tax dollars. But if the employer is materially “controlling” the worker, that worker may actually be an employee in the IRS’s eyes. I’ve seen it, and it ain’t pretty. Back taxes, penalties, interest, and other fun topics.