You can save a bundle on payroll taxes and benefits by paying workers as 1099 independent contractors.
But if those workers are really W-2 workers, you face big IRS penalties, including the 100 percent trust fund penalty.
You can even face lawsuits from the 1099 workers who want the courts to make them W-2 employees, and then watch as the courts award cash from you to them for the benefits they missed.
IRS Cease-Fire Arrangement
The IRS has waged a small war against businesses that, in its view, misclassify workers to achieve payroll tax savings.
Thus, it came as a bit of a shock when in September 2011 the IRS ... Log in to view full article.