IRS in U.S. Announces New Voluntary Worker Classification Program
Last week, the IRS announced the Voluntary Classification Settlement Program (the “VCSP”), allowing eligible employers to voluntarily resolve U.S. past worker classification issues and reclassify workers as employees for federal employment tax purposes. Reclassifying workers as employees, however, raises many issues other than employment tax issues including, for example: retirement benefit plan issues; health and welfare benefit plan issues; and state tax classification, unemployment tax, and workers’ compensation issues. To learn more about the VCSP, please click here.
