Lexology (03/19/12) Chris Pelkey
The U.S. Internal Revenue Service has introduced its Voluntary Classification Settlement Program with a YouTube video geared toward employers uncertain about whether workers should be designated as employees or contractors. At less than two minutes long, the video provides an overview of the VCSP and stresses that the program offers relief to employers who voluntarily reclassify workers as employees. Relief will be granted to employers who consistently classified workers as contractors or nonemployees, filed Forms 1099 for these workers, are not being audited by the IRS, and are not being audited by the U.S. Department of Labor or a state agency regarding worker classification. Employers that wish to apply for relief should access IRS Form 8952 on the agency’s Web site.
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