Introduction

This webinar will cover all aspects of employee vs. contractor, including how to tell the difference, and what to do in an IRS audit. We will discuss the IRS’s 3-factor test for determining if someone is a contractor or an employee, and the older 20-factor “common law” test that IRS auditors can still reference. We will cover the Form SS-8, where a worker can file a Form SS-8 with the IRS to determine if the worker is a contractor or an employee, and what an employer should do if a worker files and SS-8.

Three options are available for businesses caught in a reclassification audit: Section 530 Relief, which provides a safe harbor where the IRS is prohibited from retroactively reclassifying workers; Section 3509 Relief, where the IRS retroactively reclassifies workers but a business can get some relief for back payroll taxes owed; and the Voluntary Classification Settlement Program, where a business voluntarily reclassifies workers before an IRS audit. Each of these options has requirements and cautions, which we will cover.

We will also cover the new Form 1099-NEC, new for 2020, for reporting contract labor payments.

Area Covered In The Webinar

  • The three factors the IRS looks at in determining if someone is a contractor or an employee
  • The 20-point “common law” test for determining contractor vs. employee
  • The reporting implications of employee vs. contractor, such as 1099 vs. W-2, payroll taxes, etc., including a discussion of the new Form 1099-NEC
  • Discuss what happens if the IRS re-classifies contractors as employees
  • Relief under Section 530 for IRS reclassification
  • Relief under Section 3509
  • The Voluntary Classification Settlement Program

Why should you attend?

At the conclusion of the webinar, participants will be able to explain the difference between a contractor and an employee, and why it is important to know the difference. We will cover the 3-factor test the IRS uses for determining if someone is a contractor or an employee, as well as the older 20-factor test. We will discuss what happens if the IRS re-classifies a contractor as an employee, and the possible relief available (called “Section 530” relief). We will also discuss the new Form 1099-NEC for reporting contract-labor pay.

Who Will Benefit

  • HR Professionals
  • Payroll Professionals
  • Office Managers
  • Bookkeepers
  • CFOs
  • Accountants
  • Managers

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Jason Dinesen is the President of Dinesen Tax & Accounting, P.C., a public accounting firm in Indianola, Iowa. His practice focuses on tax and accounting services for small businesses and individuals Know More

Mr. Jason Dinesen