Avoiding Worker Classification Problems
Author: Annette Nellen
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Law for CTEC
2 hours Federal Tax Related for EAs and OTRPs |
This course will cover the tax rules and issues regarding worker classification to avoid worker mis-classifications.
Publication Date: January 2018
Designed For
Practitioners who hire workers or have clients who hire them.
Topics Covered
- Why worker classification is relevant
- Challenges in dealing with the tax classification rules
- The federal tax rules and comparison to some states
- Gig economy considerations
- Recent developments
- Dealing with the challenges
- Practice tips
- Proposals for change
Learning Objectives
- Recognize why worker classification is relevant under numerous tax and non-tax laws
- Identify the tax rules for distinguishing between employees and contractors
- Recognize worker classification issues in the gig economy
- Differentiate special tax rules and remedies applicable when problems are discovered
- Recognize how related tax rules are relevant in the worker classification area
- Identify proposals for change
- Recognize potential consequence for an employer when employees are misclassified as independent contractors
- Identify which test the department of labor (DOL) typically uses to classify workers for purposes of the fair labor standards act
- Recognize behavioral controls using the three key areas of 'evidence of control' to determine worker classification
- Identify which code section will provide employers with relief from unpaid federal employment tax liabilities
- Differentiate challenges of a gig economy
- Recognize applicable recommendations that would apply to a worker that is classified as a contractor
- Identify what the 2017 Tax Cuts and Jobs Act will prevent employees from claiming
- Describe the most compliant group of taxpayers
- Recognize which "safety net" benefits are available to employees, but not contractors
- Describe when an employer/employee relationship is established
- Differentiate challenges employers face when classifying workers
- Describe a statutory non-employee
- Recognize what an employer must do in order to qualify for VCSP
- Identify what is affected when a worker for state purposes is misclassified
- Describe which form platform companies are typically required to file
- Recognize what Section 530 prohibit the IRS from
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Practitioners who hire workers or have clients who hire them.
Advance Preparation
None
