Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

IRS has a program to voluntarily reclassify contractors as…

Customer Question
IRS has a program to...
IRS has a program to voluntarily reclassify contractors as employee:
https://www.irs.gov/businesses/small-businesses-self-employed/voluntary-classification-settlement-programI have several employees who were first hired as independent contractor (1099) and later converted to salary based employees. The program above seems to only apply if I'm still treating them as contractors (Part IV of form 8952).If I want to voluntarily convert fix my past mistake to eliminate the potential headache of being audited, what form should I use?
Submitted: 4 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 32 minutes by:
3/7/2018
Tax Professional: Lev, Tax Advisor replied 4 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,137
Experience: Taxes, Immigration, Labor Relations
Verified

The Voluntary Classification Settlement Program (VCSP) offers certain eligible businesses the option to reclassify their workers as employees with partial relief from federal employment taxes.
What you might looking for - having the IRS help to determine the status of workers by using Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.
https://www.irs.gov/pub/irs-pdf/fss8.pdf
Employers and workers file this form to request a determination of the status of a worker for purposes of federal employment taxes and income tax withholding.

Filing a Form SS-8 requesting a “worker status” determination means the employee or the employer is asking the Service to establish if the services provided are those of an employee or an independent contractor.
Here are instructions
https://www.irs.gov/pub/irs-pdf/iss8.pdf
Please be aware - that might take up to 6 months to get determination.
But you will have an official determination.

Ask Your Own Tax Question
Customer reply replied 4 months ago
I am pretty convinced those guys should be classified as employee. So I just want to makeup those employer payroll tax. What form should I use?Also after the reclassification, what do the employees need to do about their already filed taxes as 1099 contractor?
Tax Professional: Lev, Tax Advisor replied 4 months ago

If you are sure regarding classification - you do not need to have an official classification from the IRS.
If you want to make correction for the current tax year - you will need to report compensation on W2 and not on 1099misc.

If you already issued forms 1099misc - and want to correct that - you will need to file 1099misc as voided - and issue W2.

If you did not remit payroll taxes timely - you will need to do that as soon as possible - and there will be penalties for doing late.

You will need to correct employment tax returns - federal and state.

Those workers who already filed their tax return will need to amend their individual tax returns.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 4 months ago

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all Social Security / Tax related issues.
Ask Your Own Tax Question
Customer reply replied 4 months ago
Is there a program similar to VCSP that's applicable to employers already converted those contractors to employee status? That's the only reason I am not eligible for that program. It requires that I cannot hire those contractors as employees for 60 days after I submit the application.
Tax Professional: Lev, Tax Advisor replied 4 months ago

VCSP offers a partial relief from federal employment taxes...

Otherwise corrective actions will result full responsibility for employment tax and penalties...

In additional - your state DOL may audit and force to reclassify workers as employees -that will automatically trigger IRS re-classification...

So if you are uncertain if there will be an issue - you may silently change classification for instance starting from this tax year.

.

I just noticed several questions you overlooked

https://professional.justanswer.com/chat/index/5fa5673b147d444f92d269ab6f83b22a

https://professional.justanswer.com/chat/index/b56f7470f07e453ea32f1796c8ee908c

https://professional.justanswer.com/chat/index/7a67b222c3ec43b3ad1efb5f7e490931

I really appreciate if you provide rating for these and current question - so I would be property credited for my work.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 4 months ago

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,137
33,137 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I am being told by the IRS that in addition to the penalty
I am being told by the IRS that in addition to the penalty for failure to file 1099's (that is a per 1099 penalty) that the IRS is now adding 28% backup withholding as a requirement to pay. So, if you… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I have a 1099 worker who's paper work was incorrect and has
Hello! I have a 1099 worker who's paper work was incorrect and has been paid as a 1099 for 8 months instead of a W2. What can I do and how much is this mistake going to cost me? … read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,474 satisfied customers
There is a business who would like to hire on as an Employee
There is a business who would like to hire on as an Employee or A Contractor for about 90 days. Business would like to take this person on as a contractor for the first 90 days and if it works out for… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
I am in a bit of a sticky situation with filing employee's
Hello, I am in a bit of a sticky situation with filing for an employee's 2015 taxes. We started the year when I hired him on a jobber basis, and the relationship morphed into more of a solid job for h… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,444 satisfied customers
I am needing to prepare the documents employee that was
I am needing to prepare the documents for an employee that was previous classified as an independent contractor to an employee. She started employment in October 2014 and terminated in July 2015. I am… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Payroll Tax Issue 2014.....I have a small schedule c
Payroll Tax Issue 2014.....I have a small schedule c business in 2014..I had individuals working for me in 2014...I have been advised that these individual were actually employees in 2014 but I paid t… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
When ring a employee how can we paid m on a 1099 form before
when hiring a employee how long can we paid him on a 1099 form before putting him on taxes .. 2 weeks or 3 months… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am considering ring an Independent Contractor Home Health
I am considering hiring an Independent Contractor Home Health Aide (part time, <20 hrs/week) to assist me in caring for my invalid mother. No nursing skills required, just assistance with grooming,… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have an employee who refused to take taxes out of my pay
I have an employee who refused to take taxes out of my pay for 2013, though I asked him to put me on his regular payroll he filed me as a sub conbtractor for 2013, though I worked for him on a reqular… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I had 3 people I considered as contract labor,but my tax adviser
I had 3 people I considered as contract labor,but my tax adviser tells me the IRS changed things in 2012 and that I would be responsible for paying all of their back taxes instead of giving them a 109… read more
abci168
abci168
Principal
27 satisfied customers
Am I responsible for deducting fica wages from a CNA who works
Am I responsible for deducting fica wages from a CNA who works for me? My husband has Alzheimer's disease. I have hired a young Certified Nursing Asst. to help me take care of him. She works eight hou… read more
Wallstreet Esq.
Wallstreet Esq.
Tax Attorney
Doctoral Degree
586 satisfied customers
I have run my business for a little over 4 years now paying
I have run my business for a little over 4 years now paying my workers as independent contractors (W-9) I received an audit notice from the Employment Development Department and I have feeling they ar… read more
TaxWhisperer
TaxWhisperer
Principal
Master's Degree
24 satisfied customers
An S Corp has 2 shareholders. Has not filed a return since
An S Corp has 2 shareholders. Has not filed a return since 2005. The first year, the accountant filed a W2 and a 1099 for services for shareholder B. In 2006, it's determined that shareholder B just w… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
Hi I am a SMLLC I would like to hire someone to work for me
Hi I am a SMLLC I would like to hire someone to work for me can I run a payroll for an employee and myself ? Or do I 1099 him and myself?… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
Difference between subcontractor vs. independent contractor?
Could you please help me understand the difference between the designations of subcontractor vs independent contractor vs contract/labor?… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
Can an employee elect not to have any taxes (fed, state, &
Can an employee elect not to have any taxes (fed, state, & FICA) taken out of their payroll check for half the year. Then elct to have taxes taken out of their check to remaining part of the year. If … read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
Hello, I am a single member LLC owner. Since the inception
Hello, I am a single member LLC owner. Since the inception of my LLC two years ago I have been able to handle all of the work load myself. However over the past few months my business has been growing… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,137 satisfied customers
Im a car sales man and i get paid on a 10-99, what receipts ...
Im a car sales man and i get paid on a 10-99, what receipts should i keep so i can write them off at the end of the year thanks… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x