From the course: Hiring Contract Employees

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Amnesty programs

Amnesty programs

From the course: Hiring Contract Employees

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Amnesty programs

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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…

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