Article Date:
December 2011


Word Count:
1064

 

 

New IRS Forgiveness Program for Improper 1099 Payments to W-2 Employees Is Not the Gift It Appears to Be


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.1

 

Thus, it came as a bit of a shock when in September 2011 the IRS ... Log in to view full article.

Log in to view full article
Already a subscriber?
 
Email Address

 
Password

Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee