{"id":828,"date":"2013-03-07T09:54:57","date_gmt":"2013-03-07T14:54:57","guid":{"rendered":"http:\/\/www.nw-cpa.com\/?p=828"},"modified":"2013-03-07T09:54:57","modified_gmt":"2013-03-07T14:54:57","slug":"get-out-of-jail-free-card","status":"publish","type":"post","link":"https:\/\/www.nw-cpa.com\/?p=828","title":{"rendered":"Get out of jail free card"},"content":{"rendered":"<p><a href=\"http:\/\/www.nw-cpa.com\/wp-content\/uploads\/2013\/03\/man-in-prison-behind-bars-jail.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-829\" style=\"margin: 2px 4px;\" alt=\"man-in-prison-behind-bars-jail\" src=\"http:\/\/www.nw-cpa.com\/wp-content\/uploads\/2013\/03\/man-in-prison-behind-bars-jail-300x197.jpg\" width=\"300\" height=\"197\" srcset=\"https:\/\/www.nw-cpa.com\/wp-content\/uploads\/2013\/03\/man-in-prison-behind-bars-jail-300x197.jpg 300w, https:\/\/www.nw-cpa.com\/wp-content\/uploads\/2013\/03\/man-in-prison-behind-bars-jail.jpg 752w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Well, not jail exactly.<\/p>\n<p>Many employers prefer to classify employees as contractors to avoid paying payroll taxes and employee benefits. \u00a0If the IRS , state employment agency, or the Department of Labor (DOL) audits a taxpayer and determines that employees have been\u00a0miss classified\u00a0as contractors, the employer may have to pay the employees&#8217; shares of taxes, including estimated income tax, plus the employer share of payroll taxes, interest, and penalties. \u00a0In addition there is a special six year statute of limitations rather than the normal three year limit as to how far back the IRS can\u00a0asses\u00a0additional tax.<\/p>\n<p>The IRS Voluntary\u00a0Classification Settlement\u00a0Program (VCSP) as described \u00a0in <a href=\"http:\/\/www.irs.gov\/irb\/2012-51_IRB\/ar16.html\">Announcement 2012-45 <\/a>offers employers the opportunity to reclassify their contractors as employees \u00a0and limit exposure to additions to tax, penalties and interest. <a href=\"http:\/\/www.irs.gov\/irb\/2012-51_IRB\/ar17.html\">\u00a0Announcement\u00a02012-46<\/a>\u00a0temporarily expands the VCSP through June 30, 2013, to employers that failed to file Forms 1099 for their contractors.<\/p>\n<p>Here&#8217;s a good article about the VCSP: \u00a0<a href=\"http:\/\/www.accountingtoday.com\/news\/Get-Worker-Reclassification-Relief-VCSP-65969-1.html?ET=webcpa:e6785:140577a:&amp;st=email\">Get Your Worker Reclassification Relief While It Lasts<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Well, not jail exactly. Many employers prefer to classify employees as contractors to avoid paying payroll taxes and employee benefits. \u00a0If the IRS , state employment agency, or the Department of Labor (DOL) audits a taxpayer and determines that employees have been\u00a0miss classified\u00a0as contractors, the employer may have to pay the employees&#8217; shares of taxes, &hellip; <a href=\"https:\/\/www.nw-cpa.com\/?p=828\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Get out of jail free card<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[58,402,404,59],"class_list":["post-828","post","type-post","status-publish","format-standard","hentry","category-federal-income-tax","tag-contract-labor","tag-human-resources","tag-local-taxes","tag-payroll-taxes"],"_links":{"self":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts\/828","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=828"}],"version-history":[{"count":3,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts\/828\/revisions"}],"predecessor-version":[{"id":832,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts\/828\/revisions\/832"}],"wp:attachment":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}