Employee or 1099 Contract Labor? Fix the Problem and Get Right with the IRS … For Free
Important Update: The IRS wants to forgive all your 2013 taxes and penalties for mis-classified 1099 contractors who should be employees.
We first wrote about this in 2011. Now the IRS has extended the program and the first part of the new year is the best time to get this done. Start 2014 with no more contract employees.
Paying some employees as 1099 contract labor (independent contractors) seems like a good deal: You save time and paperwork… and a bunch of money on taxes. But it’s not legal, and the penalties are harsh. It’s time to come clean and use this new program to “get out of jail free”.
