FinanceRegs.com » Correcting worker classifications just got easier

Correcting worker classifications just got easier

September 24, 2008 by Carol Katarsky
Posted in: Best practices, IRS regs, In this week's e-newsletter, Latest news & views, Tax compliance

Making a worker classification adjustment? IRS just made it a lot easier for your company.

If your company is reclassifying a worker as an employee after receiving a determination letter from IRS, you know you need to pay the employee FICA and federal income withholding taxes.

A new legal memorandum from IRS makes doing that a little easier. You won’t have to pay interest on the previously underpaid amounts.

To download all the details, check out IRS Legal Memorandum 200825043.

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