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Avoiding Worker Misclassifications: Current Guidelines, Governmental Challenges, Section 530 Safe Harbor

Determining Employee vs. Independent Contractor Status

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Wednesday, February 28, 2024

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This webinar will cover recent guidelines, cases, and considerations for classifying workers as employees or independent contractors. Our experienced tax controversy expert will explain how the government identifies misclassifications, how to avoid misclassification, and the costs of improperly reporting workers for tax advisers and businesses.

Description

The issue of worker misclassification, treating employees as independent contractors, has become a hot topic in recent years, drawing attention to the adverse repercussions companies may face when failing to classify their workforce accurately. Whether unintentional or deliberate, misclassification can lead to severe consequences, including back taxes and penalties.

Beyond tax consequences, misclassifying workers exposes companies to legal action. High-profile lawsuits against industry giants such as Uber, FedEx, and Citigroup highlight the gravity of this issue. In 2020, FedEx Ground Package Systems settled a lawsuit for $2.4 million, addressing allegations of misclassifying drivers as independent contractors. As a result, the spotlight on misclassification has grown, prompting increased scrutiny from states, government officials, and individual businesses.

Listen as our knowledgeable panelist discusses the ins and outs of worker classification and steps companies can take to avoid the harsh consequences of misclassifying employees.

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Outline

  1. The problem with misclassifying workers
  2. The cost of compliance with employment tax laws
  3. How the government currently distinguishes employees from independent contractors
  4. The consequences of misclassifying employees
  5. How the government detects worker classification violations
  6. How to avoid or lessen the impact of worker misclassification violations

Benefits

The panel will review these and other critical issues:

  • Recent cases resulting from worker misclassification
  • Current guidelines for workers improperly taxed as independent contractors
  • Methods the government uses to detect worker classification errors
  • Steps employers can take to ensure workers are properly classified and paid
  • Actions that can be taken to mitigate the consequences of a determination of worker misclassification

Faculty

Dyer, Marcus
Marcus E. Dyer, CPA, JD

Principal, Team Leader of Tax Controversy
Withum Smith+Brown

Mr. Dyer manages and reviews all aspects of federal and state tax compliance for C-corporation, S corporation and...  |  Read More

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