By Phil Karter The Quality Stores employment tax refund case was argued before the Supreme Court on January 14, 2014. An explanation about the issue at stake can be found in prior Taxblawg.net postings. Although the outcome of the case remains in doubt, the possibility of a taxpayer victory means that employers should start thinking … Continue reading Quality Stores Day Of Reckoning Draws Near – What Should Employers Be Thinking About?
By Phil Karter and John Hackney For companies that have implemented employee layoffs in the past several years and made severance payments to terminated employees, the prospect of eligibility for federal tax refunds for any FICA taxes withheld from such payments took another step forward with the Sixth Circuit’s January 4th denial of the government’s … Continue reading Sixth Circuit Moves The Ball Forward For Companies Seeking FICA Tax Refunds On Supplemental Unemployment Compensation Benefit Payments
The IRS released Notice 1036 to assist employer’s with determining the payroll tax consequences of the fiscal cliff. 2013 Withholding Tables. Notice 1036 includes the 2013 Percentage Method Tables for Income Tax Withholding. Employers should implement the 2013 withholding tables as soon as possible, but not later than February 15, 2013. Employers can use the … Continue reading The Moment You Have All Been Waiting For: Payroll Tax Guidance for 2013
Employment Tax: Yet Another Opportunity to Come Clean - Whether a worker is performing services as an employee or as an independent contractor depends on the facts and circumstances. This determination may be difficult for many companies and may lead to significant exposure. In order to facilitate voluntary resolution of potential worker classification issues and … Continue reading Employment Tax: Yet Another Opportunity to Come Clean –
By Hale Sheppard Despite the recent increase in online commerce, traditional methods of moving product, such as so-called “direct selling,” are alive and well. Indeed, according to a recent IRS study, direct selling is a significant industry, with annual sales of nearly $30 billion and more than 13 million salespersons in the United States alone. The … Continue reading Direct Sellers Hit by IRS Worker – Classification Audits
By Hale Sheppard The difference between what taxpayers should pay and what they actually pay the IRS is called the “tax gap.” A significant portion of the tax gap is attributable to non-compliance with employment tax laws, including worker misclassification. The IRS is currently conducting a three-year research project, which entails an additional 6,000 random … Continue reading Settlement Program for Worker-Classification Issues: Putting the Latest Employment Tax Offer into Perspective
On September 21, 2011, the IRS announced the launching of the Voluntary Classification Settlement Program. This program will provide employers with the ability to resolve past worker classification issues and achieve certainty under the tax law at a significantly reduced employment tax rate by voluntarily reclassifying their workers. Under the program, eligible employers can obtain … Continue reading MORE BREAKING NEWS: IRS Announces New Voluntary Worker Classification Settlement Program