Switching to Independent Contractors Draws Scrutiny from IRS and Department of Labor
Switching to Independent Contractors Draws Scrutiny from IRS and Department of Labor With the current state of the economy, shifting from full-time employees to independent contractors is a cost-cutting measure that some businesses have implemented. This saves the business money by shifting the burden of payroll taxes to the worker, and lowering or eliminating unemployment insurance premiums and/or workers compensation premiums. Misclassified Workers Result in Additional Taxes and Penalties But according to a recent ABA article, for those who have misclassified their workforce, the glare of the IRS spotlight may soon be upon them. According to the article, over the next three years, the InternalRead More →