On Monday, March 11, 2013, Richard Reibstein, the publisher of this blog, submitted 17 pages of detailed Comments to the U.S. Department of Labor’s proposed data collection for its Worker Classification Survey. The Comments, which were officially received By the Labor Department on March 12, noted that, absent substantial revisions
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Extension of the IRS’s Voluntary Classification Settlement Program: Is it Worth the Price of Admission for Businesses Concerned About Independent Contractor Misclassification?
The IRS earlier this week temporarily expanded the Voluntary Classification Settlement Program (VCSP), which was the subject of a prior post, to permit taxpayers who do not meet all of the conditions for the original Program to reclassify independent contractors as employees for federal employment tax purposes. The expanded…
IRS Confirms Valid Use of Independent Contractors
An IRS official noted that it is a valid business position to classify workers as independent contractors, so long as the business follows the law in making the classification. Anita Bartels, Program Manager for the IRS’s Employment Tax Compliance Policy section, speaking at the IRS’s Worker Classification webinar…
U.S. Budget: Labor Department Gets Additional Funds to “Detect and Deter the Misclassification of Workers as Independent Contractors”
The Fiscal Year 2013 Budget was announced by President Obama on Monday, February 13. It once again includes special funding for the Labor Department to “detect and deter” companies from misclassifying employees as independent contractors. Specifically, on page 146 of the Budget for the Labor Department, President Obama commits $14…
California and U.S. Labor Department Enter into Memo of Understanding to Jointly Combat Independent Contractor Misclassification
In a news release issued earlier today, February 9, 2012, the California Labor Commissioner co-hosted a press teleconference with the Deputy Administrator of the U.S. Department of Labor during which they announced the signing of a memorandum of understanding between the two agencies focused on misclassification of employees as independent…
U.S. Labor Department and IRS Sign Pacts to Coordinate Their Crack Downs on Independent Contractor Misclassification
On September 19, 2011, Secretary of Labor Hilda Solis and IRS Commissioner Doug Shulman signed a Memorandum of Understanding to coordinate both agencies’ law enforcement efforts aimed at businesses that misclassify employees as independent contractors. At a ceremony held at the Labor Department headquarters in Washington, Secretary Solis said, “We’re…
IRS’s New Voluntary Classification Program Adds Another Means to Minimize Independent Contractor Misclassification Liability
The IRS yesterday announced a new program to permit taxpayers to voluntarily reclassify independent contractors as employees for federal employment tax purposes.
The program, called the “Voluntary Classification Settlement Program” (VCSP), would allow businesses to voluntarily reclassify workers who currently receive 1099s from the company by making what is referred…