The importance of correctly classifying workers as employees or independent contractors has never been greater. It is no longer just businesses seeking to cut costs by hiring independent contractors. The Tax Cut and Jobs Act of 2017 created a 20% income deduction for business owners, incentivizing employees to become independent contractors.
The definition of the employer-employee relationship, however, has not changed and cannot be circumvented by agreement between business and worker.
Additionally, many states are broadening the employer-employee definition as they attempt to make gig workers (such as those working for Uber) and independent sellers (such as those selling Tupperware) employees. Misclassification of employees can literally bankrupt a business. To protect yours, learn to properly navigate the Employee vs Independent-Contractor classification process.
If the IRS finds the relationship between a business and workers treated as independent contractors to be incorrect, the IRS can (and will) retroactively reclassify those workers as employees. If a business misclassifies a single employee it will face years of back taxes, unfiled or amended payroll returns, and amended income tax returns. Misclassifying more than a handful, however, can be the death-knell for many businesses. They will owe a crushing amount of unpaid employment taxes, tax filings, and amended income tax returns. They may also be liable for benefits employees did not receive while misclassified.
Our Independent Contractor vs. Employee course covers everything you and your employees need to know to correctly classify workers, avoid reclassification, and minimize the cost of reclassification if and when it occurs.
The Independent Contractor vs. Employee Course contains 2 hours of video broken up into eight easily-navigated lessons as well as 20 resources including links to law review articles, court judgements and IRS documents.
All courses and articles are for informational purposes only and do not constitute tax advice. Taxes are complicated - do not act on course information without consulting a professional. Always refer to treasury regulation before making any tax decision. Read the full disclaimer.
I just completed the 1099-NEC/MISC course - this was very helpful to me. It is greatly appreciated.- Tammy L, Anchorage, AK, 1099-NEC & 1099-MISC Training Course Course
This course package is thorough and will give you a solid handle on how to optimize your business expenses to minimize your taxes and keep appropriate records to handle any IRS challenges. Only want to dive into a particular topic? Jump to that video and scan forward to where your issue is addressed. Or watch the whole series to learn it all!- Josh, Charles Town, WV, Real Estate Agent Tax-Cut Library, Agent Edition Course
I took the course last weekend and it was excellent. I’ve also had a couple of e-mail exchanges with Brett to clarify a few things, which I really appreciated. I found the class to be very easy to understand. I do have a finance background, but I think it would be comprehensible to people who don’t. I will recommend that the next Treasurer of our HOA take the course when he/she takes over.- Nancy S, Glenview, IL, 1120-H Basics Course
I haven’t practiced in the accounting field in quite some time and wanted a refresher. The Overnight Account course 1099-Misc Basics was very helpful! It was simple to follow along and understand each section. I would highly recommend this course! Staff were quick to answer my question as well. I love that I can review the modules again, if needed, at any time. I will definitely be using them again for more classes.- Tammy, Anchorage, AK, 1099-MISC Basics (Training Edition) Course
I haven’t practiced in the accounting field in quite some time and wanted a refresher. The Overnight Account course 1099-Misc Basics was very helpful! It was simple to follow along and understand each section. I would highly recommend this course! Staff were quick to answer my question as well. I love that I can review the modules again, if needed, at any time. I will definitely be using them again for more classes.- Tammy, Anchorage, AK, 1099-MISC Basics Course
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