Posts tagged workers.
IRS Form SS-8 Determinations of Employee Status
Employers that have workers which the employer classifies as "independent contractors" (Form 1099) risk having these workers reclassified by the IRS as "employees." This determination 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. The employer will also be required to treat the "reclassified" contractors as employees going forward.
A worker treated by an ...
Posted in: Employment Tax, Federal Tax
Tags: Determination of Worker Classification Status for Purposes of Federal Employment Taxes and Income Tax Witholding, employers, independent contractors, IRS, SS-8, workers