Welcome to the 1099 economy – Independent contractor scrutiny shows no signs of diminishing

Description

Abstract: More and more businesses are turning to independent contractors to meet labor needs. But, as they do, the IRS continues to scrutinize whether many of these independent contractors are actually employees. This article explores the agency’s interest, poses key questions to consider, and checks in on the IRS’s Voluntary Classification Settlement Program. A sidebar looks at another important compliance issue related to independent contractors: the Department of Labor’s “economic realities” test.