Business and Employment TaxesWorker Classification
Coggins Law Office
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Brian Coggins, Business Tax Attorney
Misclassifying Workers As Independent Contractors Has Major Tax Implications
Businesses must withhold income taxes, and withhold and remit FICA taxes (Social Security and Medicare) and unemployment taxes from the wages of their employees. As such, an employer’s classification of its workers as employees versus independent contractors has a substantial impact on its business tax responsibilities and liabilities.
During a business audit, the IRS may examine your employee classifications. If the service determines you have misclassified your workers, you will not only be liable for all of the taxes you should have withheld, you will also be hit with large penalties.
BRIAN COGGINS, ESQ
Protect your business and your bottom line.
Contact me, attorney Brian Coggins, for help with employee classification. I can assist both with the initial classification process and reclassification, and provide protection during audits.
Located in Roseville, California, my firm represents businesses throughout the Sacramento area.
I have more than 15 years of tax-related experience, both as an accountant, and now as an attorney. I will act as a liaison during worker classification issues with the IRS, helping you prove your classification is correct or minimize your financial liability in the event reclassification is necessary.
For help with classification issues, contact my law office.
Call 916-270-2312 or contact me online to schedule your free consultation.
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Employee Or Independent Contractor?
The IRS uses a three-prong test when determining whether a worker is an employee or an independent contractor:
First, the service looks at the amount of control the employer exercises over the worker. The greater the amount of control, the more likely the worker will be classified as an employee.
Voluntarily Reclassifying Your Workers
As working relationships change over time, it may be necessary to reclassify independent workers as employees.
The IRS offers a Voluntary Classification Settlement Program (VCSP) that allows taxpayers to change worker status to the employee. The requirements to participate are complex, but I can guide you through the process.
An Experienced Tax Attorney Serving Northern California
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Coggins Law Office
9001 Foothills Boulevard, Suite 110
Roseville, CA 95747
+1 (916) 270-2895