Worker Classification at the Federal Level

Author: Annette Nellen

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

This course covers the rules on how workers are classified as employees or contractors for federal tax purposes. The significance of the classification is also addressed.

In addition, special rules are explained including Section 530 and those on assessments for misclassification. Recent cases and current issues are presented.

Publication Date: June 2016

Designed For
Practitioners who advise clients on worker classification and payroll tax matters. Business owners who hire employees and contractors.

Topics Covered

  • Why misclassification occurs and why it is a problem
  • The IRS worker classification system
  • Section 530
  • Relevant IRS forms
  • Rules on computing payroll taxes owed if there is a misclassification
  • The IRS Voluntary Classification Settlement Program
  • Tips for avoiding misclassification

Learning Objectives

  • Apply the worker classification approach used by the IRS
  • Recognize the special rules on how misclassifications are addressed
  • Identify the special classification programs of the IRS
  • Recognize how to prevent misclassification problems
  • Differentiate under which circumstances a person would file Form 8919
  • Identify the caveats to be aware of for a misclassified worker applying for the Voluntary Classification Settlement Program (VCSP)
  • Recognize best practices for an employer regarding worker classifications
  • Identify when an employer would be required to file a Form 1099 under IRC §6041
  • Differentiate between an independent contractor and an employee
  • Recognize under which circumstances to file Form SS-8
  • Identify when a self-employed worker (contractor) must also consider state and local taxes

Level
Basic

Format
On-demand

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

Registration Options
Quantity

Fees
Regular Fee$49
Value Pass Fee$0

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