The IRS has gotten pretty aggressive about going after employers who retain “independent contractors” rather than “employees.” Just because you call the people who work for your company “independent contractors” does not mean that they are. The IRS might audit your district’s books years later and determine that these folks were actually “employees.” That would mean your district owes a bunch of back taxes.
The IRS audits both private sector employers and governmental employers, like school districts. If the IRS concludes that your speech therapist or educational diagnostician was actually your employee, when you treated them as independent contractors, your district’s budget might be facing an unexpected and large hit.
Our firm is offering an audioconference on this very relevant and important topic on March 6th. Attorneys Shellie Hoffman Crow and Morgan Beam will present practical strategies for you to properly classify workers. Shellie and Morgan will fill you in on how the IRS looks at this issue, and identify common areas of concern in school district operations.
You can sign up at our website: www.walshgallegos.com.
DAWG BONE: NO REASON TO PAY MORE TAXES THAN YOU OWE.
Tomorrow: Toolbox Tuesday….