Human Resource Services

:: Deidre Siegel
Director, Human Resource Services
G. R. Reid Consulting Services, LLC
Read about G.R. Reid Human Resource Management Tools

Are You Classifying Your Employees Correctly?

The IRS has launched a three year program that will randomly examine 6,000 companies to identify permanent workers that are being misclassified as freelancers (1099s). They are seeking violators of the Tax Code and most of this activity is being targeted to SMALL BUSINESS OWNERS. Why? The IRS believes that small businesses are more likely to evade taxes – but the truth is that it is much easier and faster for the IRS to audit smaller businesses. The U.S Department of Labor estimates indicate that almost 30% of companies allegedly misclassify at least some of their employees. As Human Resource professionals, we know that most of the time that is not being done intentionally! Let us come in and educate you, and verify that you are classifying your employees correctly!