Employment update — IRS offers truce in worker classification battle

Description

Abstract: Among the most long-standing battles between the IRS and employers — including construction businesses — is the classification of employees vs. independent contractors. This article discusses why this has been such an issue, and shows how the new Voluntary Classification Settlement Program (VCSP) allows some businesses to escape harsh penalties if they voluntarily reclassify independent contractors as employees. A sidebar lists three major factors of worker classification.