Client Alert - Are Your Independent Contractors Misclassified? IRS Offers Employers a “Fresh Start” to Reclassify Workers

The Internal Revenue Service (IRS) and the Department of Labor (DOL) have launched a new program to permit employers that have classified workers as independent contractors to switch the classification to employee through a low-cost settlement program.  The IRS will allow employers to change past worker classification issues by making a minimal payment and avoid substantial payroll tax obligations for prior years that would be assessed by the IRS under an audit.