Worker Classification: An Auditor's Advice For IRS Compliance
While Independent Contractors may be a necessary and strategic component to your business, the IRS, Workers Compensation, and state agencies are concerned with whether or not a worker has been misclassified – and thus feel that they are not getting their share of taxes – and have stepped up the number of audits that are aimed specifically at worker classification.
A “re-classification” of the your Independent Contractors to employees can result in assessments against your organization for back taxes, substantial penalties, and interest. To prevent substantial fines and penalties you need to know the rules regarding what makes a worker an Independent Contractor versus an employee, and that is where this training session can help.
Your trainer is Mark Schwartz, a former payroll tax auditor. Mark will provide examples from his auditing and hearing experience, including the twenty factors used to determine if an employment relationship exists. He’ll also help you analyze language used in contracts with Independent Contractors to see if such language can be used against you in an audit.
You will leave the webinar understanding how to defend your position on your workers so the auditors will have a difficult time substantiating re-classification of your Independent Contractors to employees.What You'll Learn:
During this training session, you will learn how to properly indentify, use, and pay Independent Contractors to prevent costly worker-classification audits. Specifically, you and/or your team will learn:
- The twenty factors used to determine if an employment relationship exists
- What the IRS and states consider a bona fide independent contractor
- How to use contracts to solidify your relationship – and how they can both help and hurt
- How to set up a screening system that can be used by your hiring managers and human resource personnel to insure that they are following the IRS rules
- What the auditing agencies are focusing on
- How to determine the scope and potential areas of focus for your audit
- How to identify any areas of concern prior to an external audit or an audit by another group within your company
- Common areas where mistakes or issues can normally be found
- How a review can help you detect internal control issues
- Where to go to for assistance so you're not re-creating the wheel
- Devising a game plan on what you want to review and how to divide and conquer