From Forbes.com – IRS expands IC Amnesty
Forbes.com brought us a very interesting article about the reclassification of independent contractors into employees.
The article starts off by saying, “Every company with employees and independent contractors knows the IRS and other agencies can reclassify independent contractors. The IRS prefers employees. After all, IRS statistics show that contractors don’t always pay their taxes. The IRS gets taxes quicker and more reliably via withholding. What’s more, withholding includes payroll taxes, while self-employment tax—which independent contractors are supposed to pay—is notoriously under-collected.”
The author, Robert W. Wood, then expands on the voluntary switch from independent contractors to employees, and the criteria required. He says, “The IRS Voluntary Classification Settlement Program (VCSP) involves voluntarily converting your contractors to employees for the future.”
In a nutshell, employers applying for the reclassification program will no longer be under scrutiny from the IRS for doing so, and the process has been simplified for them.
What this means for the Mystery Shopping Community remains to be determined.
For the full Forbes.com article, please visit http://www.forbes.com/sites/robertwood/2013/03/01/irs-expands-independent-contractor-amnesty/.
For the IRS guide on the reclassification, please visit http://www.irs.gov/pub/irs-utl/x-26-07.pdf .
For more information on Mystery Shopping, please read The Essential Guide to Mystery Shopping.
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