Businesses of all sizes are being targeted by the IRS in an effort to identify misclassification of employees as independent consultants. As we all know, the government is searching out any and all ways to increase revenue, and enforcement of employment related tax laws is just one route. I have recently read two similar articles http://ow.ly/19UUG and http://ow.ly/19UVm that detail these efforts. If you are a business owner, whether large or small, misclassification can end up being more expensive than you thought.
One way to avoid this expensive and potentially criminal situation is seek advice from a certified HR resource. A professional can help determine whether your situation is compliant, as well as fix the problem. There are firms that offer small businesses customized solutions that give them the piece of mind of knowing that their workforce is being employeed in compliance with the myriad of employment regulation and tax laws that exist today. Check out our White Paper on the subject as well http://ow.ly/19V9h.
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