As CPAs, we receive numerous industry magazines, email newsletters, tax articles, etc. One of the most common on-going topics that we have cross our desk is in regards to worker classification of independent contractor vs employee. In July, we posted an article on the Federal Voluntary Classification Settlement Program (VCSP), which was a way for employers to gain Federal relief on penalties if they had wrongly misclassified employees. (Click Here to read that article).
Recently, we came across this article in Accounting Today titled “States Clamp down on Misclassified Employees and Independent Contractors”, on how states are also seeking penalties on misclassified employees. Misclassifying independent contractors can be a very costly mistake. If you have any questions or concerns on how you are classifying employees and independent contractors please contact us.
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