You get a letter from the state EDD or the IRS informing you that your company has been selected for an employment tax audit. Are you Ready?
Did you know that:
Over 70% of all employment tax audits conducted result in a finding of misclassified workers?
The EDD and the IRS win 90% of the cases that go […]
IRS Auditors Look at More Than Accounting Records When Auditing an IC’s Business
Collabrus works on behalf of client companies to help them safely and cost-effectively engage contingent workers in their business. As such, most of the articles I write are employer-centric. In today’s article I will look at the issue of IC Compliance from the […]
I’m seeing an increased number of businesses being audited for worker misclassifications by both state and federal agencies.
In the past several months I’ve encountered a significant increase in the number of businesses who are currently being audited for employment taxes and misclassified workers by the IRS or a state employment tax agency. Oftentimes they are […]
In my seminars I tell participants that, “Over 70% of all employment tax audits find misclassified workers, resulting in a tax assessment.”
The reason the number is so high is because tax agencies rarely select a company for an employment tax audit unless they suspect there are misclassification errors. This means the auditor shows up the […]
Because there are a whole bucket of reports and taxes that must be filed and paid this time of year. Think of the next couple months as the Holiday Season for Tax People!
What’s happening?
Due by January 31, 2010
Forms W-2: You must furnish each employee a completed Form W-2, Wage and Tax Statement. You typically have […]
That’s right! For example, California’s EDD doesn’t publish this fact (government agencies don’t like to publicize these statistics) but at least 70% of all companies audited by them receive a tax assessment for misclassified workers, including back payroll taxes with penalties and interest.
There are some reports that the IRS’ finds misclassified workers in 90% of […]
Did you know:
Over 70% of all employment tax audits result in finding misclassified workers?
The EDD and the IRS win 90% of the cases that go to hearing or trial?
During this recession, the EDD and the IRS have been getting increased funding to enforce IC compliance?
It is too late to prepare for an audit challenge after […]
Often times, clients want a quick, easy solution to the IC compliance question.
Unfortunately, a simple answer won’t work when it comes to who is an employee or independent contractor. There is NO universal formula where “if you do this you have an IC…”
Common law is too complex for an easy answer
In the previous article I used the […]
What’s an independent contractor? I just want a simple answer!
Common laws and statutory laws that determine who is an employee or independent contractor are not that simple. There is not a magic pill to prescribe to make someone an IC, or a formula where “If you do [this] you have an IC.”
Whenever I give a seminar […]
Over the years, I’ve found some employers are unaware of specific conformity laws intended to protect their company, but due to confusion around reporting, these laws caused more harm than help. So I thought I’d take a moment to share an example with you. You can thank me later.
Essentially, there are federal “conformity laws” […]
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