Reality–Not Labels–Determines Worker’s Status
Written by: David Closson on Wednesday, November, 14th, 2012
If you classify any workers as independent contractors, now is a good time to make sure you get those classifications right. The IRS and U.S. Department of Labor launched a massive “Misclassification Initiative” last year to identify employers who are labeling employees incorrectly as independent contractors to save on taxes. The IRS predicts that the crackdown will reap at least $7 billion in revenue over the next 10 years. With that much money up for grabs it is likely that business classifications will be audited by one of the over 100 new auditors hired by the Department of Labor. To make sure you are properly classifying your workers, the key is the degree of control you exercise. If you like assistance in classification our attorneys and employment law advisors are available to assist you.