1099 Contractor to W2 Employee: Misclassification of Employees FIXED

🤯 Are your workers 1099 contractors when they should be W2 employees? 😱 Dive into our latest episode for a step-by-step guide to rectify the situation of employee misclassification. Learn how the Voluntary Classification Settlement Program (VCSP) can save you from hefty penalties and reshape your tax compliance. Subscribe now for more HR insights!
#IRSInsights #taxcompliance #VCSP #EmployeeClassification #businesstips #hrinsights #mustwatch #mustlisten

[@Psa354318]

They let the company off Scott free then railroad the employee for the past do taxes that can't be clarified under company income?

[@peopleprocesses]

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.

[@creativeimranbd]

good video

[@peopleprocesses]

Thank you! Glad you like it.

[@KatieLady111]

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?

[@peopleprocesses]

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.

[@KatieLady111]

@@peopleprocesses interesting! Thank you for the info.

[@ericchavez8921]

What about overtime pay for the employee , would the employer pay that what they owe.

[@peopleprocesses]

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!

[@user-tx5et2ie4m]

If someone is misclassified for multiple years. Does the employer have to pay 10% per year or just for the most recent year?

[@peopleprocesses]

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 =)