Posts tagged employee relations.
Section 530 Relief
Employers that have workers which the employer classifies as "independent contractors" (Form 1099) risk having these workers reclassified by the IRS as employees. This is a major audit area for the IRS. If the IRS does audit an employer, and reclassifies "contractors" as "employees" this will subject the employer to substantial federal employment tax liabilities, penalties, and interest, and the employer will also be required to treat the "reclassified" contractors as employees going forward.
If an employer is audited by the IRS, the IRS will generally find ...
Posted in: Employment Tax, Federal Tax
Tags: employee relations, federal employment tax, independent contractor, independent contractor issues, Section 530. Section 530 relief