Is that independent contractor really an employee? How to steer clear of worker classification woes
Abstract: Contractors beware: The IRS continues to be hot on the trail of any employer that, in its eyes, erroneously treats a bona fide employee as an independent contractor. This article explains the three categories of evidence the IRS uses to determine worker status, along with best practices that contractors can employ to avoid misclassifying workers. Those who have already misclassified workers may be able to reduce back pay and penalties through the Voluntary Classification Settlement Program (VCSP).