Worker Classification

Correctly classifying workers as employees or independent contractors may help avoid future conflicts with the Internal Revenue Service (IRS). If the IRS finds a worker has been misclassified, a company may have to pay for missed employee tax benefits, according Tax Resolution University. The IRS loses over $14 billion per year due to underpaid employer taxes. Some businesses may incorrectly classify workers to avoid paying for health insurance and 401K plans. Other business owners may simply be ignorant.


Read more at Suite101: Money Saving Business Tax Tips http://www.suite101.com/content/money-saving-business-tax-tips-a300736#ixzz13OaZqrTB