If your business uses independent contractors as part of its work force, depending on the circumstances, the IRS might reclassify these workers as employees. Such a reclassification would expose your business to employment taxes and penalties. In addition, your business might be responsible for retroactive fringe benefits for any reclassified workers.
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If you are a family that has privately hired a household employee to provide childcare, senior care, etc., in your home, there’s a relatively low chance that you'll know what aspects of household employment have changed from 2015 to 2016. The good news is that most of the changes are relatively minor, but here are five topics you should be aware of:
Each week, we receive calls and inquiries about a worker classification and the considerations whether that person should be considered an employee or an independent contractor. The Zinner staff of CPAs and management consultants meets often with clients to ensure their workforce is properly classified.