Just a couple weeks ago, Missouri and Illinois, along with other states, entered into an agreement whereby the respective states’ DOLs will share information with the IRS in order to permit the IRS to more strictly enforce the wage and hour laws.
Companies that mischaracterize employees as independent contractors will now be at greater risk of being caught in light of this action.
If you are uncertain whether your staff are employees or truly independent contractors, we can assist you in making that determination. If, on the other hand, you know employees have been misclassified as independent contractors, there is a new voluntary re-classification program instituted by the IRS which removes up to 90% of the taxes, penalties and interest which would normally be charged for the 3-year look back.