{"id":6140,"date":"2011-09-21T17:11:51","date_gmt":"2011-09-21T21:11:51","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=6140"},"modified":"2011-09-24T17:49:09","modified_gmt":"2011-09-24T21:49:09","slug":"tip-of-the-week-irs-announces-voluntary-worker-classification-settlement-program","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2011\/09\/tip-of-the-week-irs-announces-voluntary-worker-classification-settlement-program\/","title":{"rendered":"Tip of the Week: IRS Announces Voluntary Worker Classification Settlement Program"},"content":{"rendered":"
\r\n\t\"IRS<\/a>\r\n\t
IRS Commissioner Douglas H. Shulman<\/div>\r\n<\/div>The Internal Revenue Service (IRS)<\/a> today launched a new program that will enable many employers to resolve past worker classification issues and achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers.<\/p>\n

Minimal Payment Will Clear Up Prior Liabilities<\/strong><\/p>\n

This new program will allow employers the opportunity to get into compliance by making a minimal payment covering past payroll tax obligations rather than waiting for an IRS<\/a> audit.<\/p>\n

Part of the \u201cFresh Start\u201d Initiative<\/strong><\/p>\n

This is part of a larger \u201cFresh Start\u201d initiative at the IRS<\/a> to help taxpayers and businesses address their tax responsibilities.<\/p>\n

Settlement Program Provides relief and Certainty<\/strong><\/p>\n

\u201cThis settlement program provides certainty and relief to employers in an important area,\u201d said IRS<\/a> Commissioner Doug Shulman. \u201cThis is part of a wider effort to help taxpayers and businesses to help give them a fresh start with their tax obligations.\u201d<\/p>\n

VCSP Designed to Increase Tax Compliance<\/strong><\/p>\n

The new Voluntary Classification Settlement Program (VCSP) is designed to increase tax compliance and reduce burden for employers by providing greater certainty for employers, workers and the government. Under the program, eligible employers can obtain substantial relief from federal payroll taxes they may have owed for the past, if they prospectively treat workers as employees. The VCSP is available to many businesses, tax-exempt organizations and government entities that currently erroneously treat their workers or a class or group of workers as nonemployees or independent contractors, and now want to correctly treat these workers as employees.<\/p>\n

Eligibility Criteria for the Program<\/strong><\/p>\n

To be eligible, an applicant must:<\/p>\n