That classify workers as independent contractors
If you play loose with the employees regarding their status, look out.
The IRS is expanding their methods for tracking down violators of employers who categorize their employees as independent contractors.Â
- States are in on it, helping the IRS in an audit.
- Individuals issuing 1099s for $25,000 more to at least 5 workers who have no other source of income is a target.
- Workers who don’t like paying the employer share of taxes may file form 8919. This form allows an individual to avoid paying self-employment taxes, and will be matched to the employer to investigate their classification.