18 Oct 2022
I Don’t Even Know You! Are Your Workers Being Properly Classified?
One headache you don’t need is having the IRS audit your client for internal worker misclassifications. Although employers often reap financial benefits when they classify workers as independent contractors, they could face substantial liability if they misclassify those workers, whether intentionally or not. IRS publishes Worker Classification 101 to provide direction on the topic. Coincidentally, the DOL’s Wage & Hour Division formally rescinded Trump administration rules on independent contractor classification and just proposed new rules in 87 Fed. Reg. (Oct. 13, 2022).
Related Content
- Independent Contractor and Employee Classification: Special Tax Issues
Learn that it’s not just about federal income tax withholding and W-2 reporting. This practice note examines special tax issues concerning independent contractors and employee misclassification, specifically which workers qualify as statutory employees for federal tax purposes under both the Federal Insurance Contributions Act and the Federal Unemployment Insurance Tax Act.
Legal Developments
- LB&I Memo Providing Updated Guidance on the Statute of Limitations on Section 965 Examinations
This article discusses the IRS Large Business and International (LB&I) division’s updated memorandum—LB&I-04-0922-0019—providing guidance regarding the extended statute of limitations for section 965 issues.
- KPMG Report: Student Loan Forgiveness and State Reporting
Due to a recent IRS notice, federal reporting is not required by entities granting the relief, nor will state reporting be required due to tack-on laws in place for most states.
- Multinationals Face Most of Inflation Act’s Biz Taxes, Prof. Says
Multinational corporations would bear most of a 15% minimum tax and a 1% tax on net share repurchases in the Inflation Reduction Act recently signed into law.
Practical Guidance Updates
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- Tax Key Legal Developments Tracker (Federal)
Stay informed on new developments:- Employee Benefits. The IRS has provided the 2022-2023 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home. I.R.S. Notice 2022-44.
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- Share fundamental guidance with your firm’s new associates to help them sharpen their research and writing skills, get the inside scoop on associate survival, and hit the ground running in the tax practice area. Review the resources in the First Year Associate Resource Kit: Tax.
- The Practical Guidance Journal Fall Edition features impacts of the Dobbs v. Jackson Health Organization decision on employers, healthcare, insurance, and privacy concerns, and tracks the status of state law changes.
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