HR Updates » Federal

IRS Voluntary Classification Settlement Program (VCSP)

Wednesday, January 23, 2013 9:34

In December, 2012, the Internal Revenue Service (IRS) announced the Voluntary Classification Settlement Program (VCSP) which provides employers the opportunity to reclassify persons they currently treat as independent contractors or other nonemployees to employee status, in order to comply with tax laws. Through this program, employers may resolve past misclassifications, restore current tax compliance, and reduce any future burden of misclassification. To participate, employers must meet certain eligibility requirements, apply to participate in the program, and enter into a closing agreement with the IRS.

For additional information about VCSP or the requirements for an individual (or group of workers) to be classified as independent contractors, contact PWA at info@pwassociates.net.


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