Thanks for the comment! Not sure what you mean exactly. But in general, if a company misclassifies an employee, the EMPLOYER is responsible for back taxes. Check out ua-cam.com/video/o9WWzh4vZV8/v-deo.html for what they have to go through to fix it.
The details of the VCSP are contained in Announcement 2011-64, 2011-41 IRB, 09/21/2011. There are also associated with participating in the VCSP, including that it is a federal tax program and provides no protection from state law claims, including state taxes, or from federal wage/hour claims, employee discrimination claims, or employee benefits claims for prior years. Classifying an individual as an employee through the VCSP might encourage states to seek their own pound of flesh due to prior misclassification and might cause reclassified individuals to assert their rights as employees under various employment laws. This purely settles the federal tax issues, and each state you employee in would need its own actions.
Great video, thank you! If I'm understanding correctly, if the employer is under audit they could be responsible for the misclassifed employees federal taxes for the duration of their employment? Also, would the employee be eligible for unemployment if let go while misclassified?
Good questions: Yes, if misclassified employers are normally held fully liable for all the WITHOLDING (and employer taxes) they should have done. For unemployment, those are on a case by case basis. In general, the DOL in your state would approve the unemployment claim, and then increase the employers state unemployment tax to make it up.
Good Question! Yes! If you were misclassified and successfully became an employee, then they would owe overtime on prior missed wages. Your states department of labor has an overtime complaint process!
No real limitation on the number of years to my knowledge if you are caught doing it wrong. If you are doing the VCSP then its just the most recent tax year =)
🚀 **Streamline Your HR Processes!** 🚀
Looking for valuable HR resources? Download our free HR guides and tools here:
peopleprocesses.com/free-downloads/
They let the company off Scott free then railroad the employee for the past do taxes that can't be clarified under company income?
Thanks for the comment! Not sure what you mean exactly. But in general, if a company misclassifies an employee, the EMPLOYER is responsible for back taxes. Check out ua-cam.com/video/o9WWzh4vZV8/v-deo.html for what they have to go through to fix it.
What about the State taxes? How do you rectify this?
The details of the VCSP are contained in Announcement 2011-64, 2011-41 IRB, 09/21/2011. There are also associated with participating in the VCSP, including that it is a federal tax program and provides no protection from state law claims, including state taxes, or from federal wage/hour claims, employee discrimination claims, or employee benefits claims for prior years. Classifying an individual as an employee through the VCSP might encourage states to seek their own pound of flesh due to prior misclassification and might cause reclassified individuals to assert their rights as employees under various employment laws. This purely settles the federal tax issues, and each state you employee in would need its own actions.
Great video, thank you! If I'm understanding correctly, if the employer is under audit they could be responsible for the misclassifed employees federal taxes for the duration of their employment? Also, would the employee be eligible for unemployment if let go while misclassified?
Good questions:
Yes, if misclassified employers are normally held fully liable for all the WITHOLDING (and employer taxes) they should have done.
For unemployment, those are on a case by case basis. In general, the DOL in your state would approve the unemployment claim, and then increase the employers state unemployment tax to make it up.
@@peopleprocesses interesting! Thank you for the info.
What about overtime pay for the employee , would the employer pay that what they owe.
Good Question! Yes! If you were misclassified and successfully became an employee, then they would owe overtime on prior missed wages. Your states department of labor has an overtime complaint process!
What about if a trucker been missclasified for past 4 years and they just found out
If someone is misclassified for multiple years. Does the employer have to pay 10% per year or just for the most recent year?
No real limitation on the number of years to my knowledge if you are caught doing it wrong. If you are doing the VCSP then its just the most recent tax year =)
good video
Thank you! Glad you like it.