IRS and Department of Labor are Cracking Down!

Heads up! 

The IRS and the US Department of Labor are embarking on an enforcement effort to crackdown on “misclassification of employees”. 

This practice (too common in the construction industry) consists of the use of “1099 – Independent Contractor” status to pay workers when they do not meet the test for that status.  The rules for determining who is an employee vs. who is an independent contractor can be vague – but just because you want to pay your work crew without paying employment taxes or going to the hassle of withholding/paying their share is not one of the tests. 

Visit the IRS Website to read information about classification of employees.

To decrease the pain of making the transition the IRS has announced a program that offers substantial reduction in penalties IF YOU ARE NOT ALREADY BEING AUDITED.