Employee vs Independent Contractor and the VCSP
Author: A.J. Reynolds
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
One of the more perplexing and problematic concepts to comprehend under federal tax law is the Employee v. Independent Contractor debate. It is critical for businesses to occasionally review the category of its workers to see if they are properly classified.
Misclassified workers remain a priority with the Internal Revenue Service (IRS). The IRS is aware that large groups of businesses avoid payroll tax responsibilities by classifying workers as independent contractors rather than employees.
Furthermore, we will discuss the Volunteer Classification Settlement Program (VCSP). The VCSP is a little-known program that may be the right choice to get your client into compliance with treating their workers as employees. Learn about the process, how to qualify for the program, and discover the significant tax savings that will benefit your client. (Bonus Material: Discussion on guidance issued by the Department of Labor).
Publication Date: August 2025
Designed For
All Tax Professionals that need to determine correct worker classification and assist clients with settlement programs in this area
Topics Covered
- Mastering Worker Classification
- Independent Contractor Defined (by IRS)
- Wages Defined (by Code Section)
- Significance of Classification
- Tests for Classification
- Classification Issues
- Department of Labor
- Control Factors
- IRS Publication 1976
- Collection Settlement Program (CSP)
- Voluntary Classification Settlement Program (VSCP)
- Gig Economy
- Case Law
- IRS Publication 5146
Learning Objectives
- Explain how to distinguish between an employee and an independent contractor
- Identify the three Categories of Control Factors
- Identify Section 530 Relief under the Revenue Act of 1978
- Explain the Classification Settlement Program (CSP)
- Explain the Voluntary Classification Settlement Program (VCSP)
- Identify recent guidance
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
