Many small businesses are tempted to classify workers as independent contractors as it allows lower overhead and withholding taxes for that employee. Often, though, they take questionable (or outright wrong) positions to do so. This article details the negative tax consequences for the employee, employer, and the IRS of these questionable positions, and highlights a new IRS program which provides an incentive for businesses to correct past misclassifications (or questionable classifications) of employees as independent contractors.
- Summary by FizzLaw Team
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Employers Playing Tax Games with Workers: IRS Offers Way to Come Clean