If you realize you have misclassified an independent contractor, there may be amnesty programs available. In this video, learn about how you can work with an attorney to get things right.
Every once in a while, the IRS gives employers a break,…and so do many state agencies.…If you realize you've misclassified…an independent contractor…and an amnesty program is available,…have an attorney guide you through the process…to make things right.…These amnesty programs typically require…to pay the taxes owed, and then the penalties are waived.…So have your attorney contact the IRS,…your employment developer department,…or other taxing authorities…about the availability of these programs.…
For instance, the IRS currently…has a Voluntary Classification Settlement Program.…The VCSP is available for companies…who want to voluntarily change…the prospective classification of their workers.…The program applies to companies…currently treating their workers as independent contractors…and want to prospectively treat the workers as employees.…A company must have consistently treated the workers…to be reclassified as independent contractors,…including having filed all required form 1099s…for the three previous years in order to participate.…
DISCLAIMER: This course addresses US law concepts that may not apply in all countries. LinkedIn (including Lynda.com) and the instructor are not giving legal advice. Neither Linkedin (including Lynda.com) nor the instructor represent you. The information conveyed through this course is similar to a college or law school course; it is not intended to give legal advice, but instead to communicate information to help viewers understand the basics of the topic presented. The views and legal interpretations presented in this course do not necessarily represent the views of LinkedIn or Lynda.com.
- Legal requirements for classifying independent contractors
- Financial and strategic benefits of contract employees
- Downsides of misclassification
- What triggers complaints and investigations?
- Licensing statutes, permit requirements, and anti-discrimination statutes
- Preventing misclassification claims
- Considering an SS-8 ruling
- Amnesty programs