If your business has been walking that fine line of Employee vs. Contract Labor, the IRS is now offering a “Voluntary Employee Reclassification Agreement” that will allow those that might come under the IRS scrutiny of really having employees instead of subcontractors. Here is the link to the new program the IRS is offering http://www.irs.gov/pub/irs-drop/a-11-64.pdf Under this program, businesses that choose to reclassify their workers to the proper classification of employee, will be able to do so with limited penalty. With the IRS reclassification program now being available, should a business that comes under audit and truly has employees misclassified there will be stiff penalties.
If you are unclear of whether or not a worker is an Employee or Contract Labor, please give us a call and we can help you with this 770-856-1309.