{"id":306,"date":"2011-10-24T04:45:23","date_gmt":"2011-10-24T04:45:23","guid":{"rendered":"http:\/\/ua-cpas.com\/blog\/?p=306"},"modified":"2011-10-24T04:45:23","modified_gmt":"2011-10-24T04:45:23","slug":"new-irs-employee-classification-amnesty-proceed-with-caution","status":"publish","type":"post","link":"https:\/\/www.ua-cpas.com\/blog\/index.php\/2011\/10\/24\/new-irs-employee-classification-amnesty-proceed-with-caution\/","title":{"rendered":"New IRS Employee Classification Amnesty: Proceed with Caution"},"content":{"rendered":"<p>While the new IRS employee classification amnesty program does offer <span style=\"text-decoration: underline;\"><a title=\"Tax Benefits of IRS Employee Classification Amnesty\" href=\"http:\/\/ua-cpas.com\/blog\/category\/staffing-agencies\/\" target=\"_blank\">significant tax benefits<\/a><\/span>, it also raises a number of concerns for employers. Issues of concern include:<!--more--><\/p>\n<ul>\n<li><strong>Will the States Conform?<\/strong><strong><\/strong><\/li>\n<\/ul>\n<p>Even though the IRS is issuing a closing agreement for the past, it\u2019s not yet clear if the States will follow. Perhaps your state will view participation in the IRS program as an admission for the past!<\/p>\n<ul>\n<li><strong>Retroactive Benefits<\/strong><\/li>\n<\/ul>\n<p>Independent contractors who become employees may be entitled to costly retroactive benefits, such as pension benefits and stock option plans.<\/p>\n<ul>\n<li><strong>Employee Discrimination<\/strong><\/li>\n<\/ul>\n<p>How will your workers themselves react? If they have an objection to the employee reclassification it can lead to discriminatory policy issues.<\/p>\n<ul>\n<li><strong>Liability Issues<\/strong><\/li>\n<\/ul>\n<p>Suppose your \u201cindependent contractor\u201d worker was in an accident and a lawsuit is forthcoming. If he was an independent contractor, he\u2019s liable, not you. Reclassifying him as an employee could make you liable.<\/p>\n<p>\u00a0In light of the many potential pitfalls, we recommend that you consult with one of our\u00a0\u00a0experienced accountants and\/or an employment attorney. While it may be a great deal for some, it\u2019s always important to examine the whole picture.<\/p>\n<p>To read our blog on the advantages of the program and to see who\u2019s eligible, click here:\u00a0<a title=\"Advantages of IRS Employee Classification Program\" href=\"http:\/\/ua-cpas.com\/blog\/category\/staffing-agencies\/\" target=\"_blank\"> IRS Employee Classification Amnesty<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IRS Employee Classification Amnesty offers tax benefits however it may be a trap for many employers. Employers, especially staffing owners, should review all ramifications carefully.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,20,23],"tags":[74,167,189],"class_list":{"0":"post-306","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-small-business-forum","7":"category-staffing-agencies","8":"category-taxes","9":"tag-employee-classification","10":"tag-payroll-taxes","11":"tag-staffing-agencies-2","12":"entry"},"_links":{"self":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=306"}],"version-history":[{"count":0,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/306\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}