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1099 Employee Classification Audits

The Internal Revenue Service is challenging the status of 1099 workers. Over a four-year period the IRS reclassified more than 400,000 1099 independent contractors to W-2 employees and collected over 52 million dollars in back taxes. If your company utilizes 1099 independent contractors, you could be liable for back taxes and penalties for misclassifying these employees. HRStaffers provides audit services to collect the appropriate data from your independent contractors. With this information you can make an informed decision concerning their employment status and thereby reduce your tax and liability exposure.

Employee Classification Audits include:

  • A comprehensive online audit system to obtain data related to employment classification
  • A thorough analysis of the data with recommendations to management
  • An ongoing process to evaluate new 1099 contractors