1099 vs W-2: How The IRS Will Forgive You
Well, maybe forgive isn’t the right word, but at least they’ll help you create a settlement program!
The IRS just released an article about how it will be providing a settlement program for those business owners who have been incorrectly paying their people as 1099 contractors instead of W-2 employees.
Here is the article on the IRS site
There are, of course, some strict qualifications for admittance to this program. However, if you can get in, and you need to “clean up” some previous errors in this arena, now is the time to do it. My bet is that this program comes at the forefront of some pretty serious IRS audits in this area, so be on the lookout for those within the next year or so.
Do you know if you are classifying / paying your workers correctly? Here is the link the the page on the IRS site that talks about how to determine if someone should be a 1099 contractor or a W-2 employee.