» W. H. Simon - IRS Updates

WORKER CLASSIFICATION SETTLEMENT PROGRAM

IRS announced a new program to provide relief to treat workers as employees. The Internal Revenue Service will provide partial relief from federal employment taxes for eligible taxpayers.

The new program by IRS is to permit taxpayers to voluntarily reclassify workers as employees for federal employment tax purposes. This program is optional, but it will afford taxpayers with an opportunity to reclassify their workers as employees for future tax periods and only require limited federal employment tax liability for the past nonemployee treatment. In order for a taxpayer to voluntarily participate in this new program, they will need to apply to enter into the program as well as a closing agreement with IRS.

If we can be of assistance in this area, please do not hesitate to contact us at (727) 791-7879 or by email to whsimon@whsimon-cpas.com.