{"id":60,"date":"2008-07-15T19:28:14","date_gmt":"2008-07-15T23:28:14","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=60"},"modified":"2008-07-15T19:28:14","modified_gmt":"2008-07-15T23:28:14","slug":"reduced-taxes-due-on-reclassified-employees","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2008\/07\/reduced-taxes-due-on-reclassified-employees\/","title":{"rendered":"Reduced Taxes Due on Reclassified Employees"},"content":{"rendered":"<p><span style=\"font-size: 10pt; font-family: Verdana; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;\">In <a href=\"http:\/\/www.irs.gov\/pub\/irs-wd\/0825043.pdf\" target=\"_blank\">Private Letter Ruling 200825043<\/a>, the IRS concluded that employers who receive a determination letter from the IRS that someone previously classified as an independent contractor should be classified as a employee may use \u00a73509 to reduce the amount of employee FICA tax and federal income tax payable. The federal withholding in such cases is reduced to 1.5% of wages regardless of what the employee claims on a Form W-4. The FICA tax rate is reduced from 7.65% to 1.53% on the employee\u2019s portion. The employer\u2019s rate remains at 7.65%. If the employer did not file Form 1099-MISC for payments made to the newly-classified employee, the employee withholding rates are doubled. Furthermore, no interest is charged on the late payment of the employee\u2019s portion of the tax.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Private Letter Ruling 200825043, the IRS concluded that employers who receive a determination letter from the IRS that someone previously classified as an independent contractor should be classified as a employee may use \u00a73509 to reduce the amount of employee FICA tax and federal income tax payable. The federal withholding in such cases is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[52,48,51,50,14,49],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/60"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=60"}],"version-history":[{"count":1,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/60\/revisions"}],"predecessor-version":[{"id":1148,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/60\/revisions\/1148"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=60"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=60"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=60"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}