Posted in: 1099s, DOL, In this week's e-newsletter, Internal controls, IRS regs, Latest news & views, Tax compliance
It’s more important than ever to ensure your company’s employee/independent contractor (IC) classifications are bulletproof. New state task forces are stepping up enforcement along with the feds, and many companies have already been hit hard.
For example, in four months, a New York State task force initiated 17 investigations based on employee interviews. So far, $3 million in back taxes and penalties due to worker misclassification has been found.
And that’s just at the state level. Now that the errors have been exposed you can imagine what the federal tax hit will be.
And with that kind of “return on investment” there’s plenty of reason for auditors in all states to take a second look at this area of your tax compliance.