{"id":6216,"date":"2011-09-30T12:35:23","date_gmt":"2011-09-30T16:35:23","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=6216"},"modified":"2011-10-06T15:55:38","modified_gmt":"2011-10-06T19:55:38","slug":"question-of-the-week-what-are-the-irs-and-dol-doing-about-workers-who-receive-1099s","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2011\/09\/question-of-the-week-what-are-the-irs-and-dol-doing-about-workers-who-receive-1099s\/","title":{"rendered":"Question of the Week: What Are the IRS and DOL Doing About Workers Who Receive 1099s?"},"content":{"rendered":"
\r\n\t\"IRS<\/a>\r\n\t
IRS Commissioner Douglas H. Shulman<\/div>\r\n<\/div>This week\u2019s question comes from Steve, a small business owner.<\/p>\n

Steve asks:<\/em><\/p>\n

I\u2019ve read about the Voluntary Classification Settlement Program (VCSP)<\/a> and its application process<\/a> with the Internal Revenue Service (IRS)<\/a>. What are the IRS<\/a> and Department of Labor (DOL)<\/a> doing about workers who receive 1099s?<\/p>\n

Answer<\/strong>: The IRS<\/a> and DOL<\/a> are entering into agreements that include the IRS<\/a> and DOL<\/a> as well as several states to share information and coordinate enforcement of current laws and regulations.<\/p>\n

Memoranda Signed at Washington Ceremony<\/strong><\/p>\n

Secretary of Labor Hilda L. Solis recently hosted a ceremony at DOL<\/a> headquarters in Washington to sign a memorandum of understanding with the IRS<\/a> that will improve departmental efforts to end the business practice of misclassifying employees in order to avoid providing employment protections. In addition, labor commissioners and other agency leaders representing seven states signed memoranda of understanding with the department\u2019s Wage and Hour Division (WHD)<\/a>\u00a0and, in some cases, its Employee Benefits Security Administration<\/a>, Occupational Safety and Health Administration<\/a>, Office of Federal Contract Compliance Programs<\/a> and Office of the Solicitor<\/a>. The signatory states are Connecticut, Maryland, Massachusetts, Minnesota, Missouri, Utah and Washington. Secretary Solis also announced agreements for the WHD<\/a> to enter into memoranda of understanding with the state labor agencies of Hawaii, Illinois and Montana, as well as with New York\u2019s attorney general.<\/p>\n

DOL and IRS Will Share Information with Participating States<\/strong><\/p>\n

The memoranda of understanding will enable the DOL<\/a> to share information and coordinate law enforcement with the IRS<\/a> and participating states in order to level the playing field for law-abiding employers and ensure that employees receive the protections to which they are entitled under federal and state law.<\/p>\n

Secretary Solis: We\u2019re Standing United to End the Practice of Misclassifying Employees<\/strong><\/p>\n

\u201cWe\u2019re here today to sign a series of agreements that together send a coordinated message: We\u2019re standing united to end the practice of misclassifying employees,\u201d said Secretary Solis. \u201cWe are taking important steps toward making sure that the American dream is still available for all employees and responsible employers alike.\u201d<\/p>\n

Commissioner Shulman: We Will Work Together More Efficiently to Address Worker Misclassification Issues<\/strong><\/p>\n

\u201cThis agreement takes the partnership between the IRS<\/a> and DOL<\/a> to a new level,\u201d said IRS<\/a> Commissioner Doug Shulman. \u201cIn this new phase of our relationship, we will work together more efficiently to address worker misclassification issues, and better serve the needs of small businesses and employees.\u201d<\/p>\n

Misclassification Can Create Economic Pressure for Law-Abiding Business Owners<\/strong><\/p>\n

Business models that attempt to change, obscure or eliminate the employment relationship are not inherently illegal, unless they are used to evade compliance with federal labor laws \u2014 for example, if an employee is misclassified as an independent contractor and subsequently denied rights and benefits to which he or she is entitled under the law. In addition, misclassification can create economic pressure for law-abiding business owners.<\/p>\n

Memoranda Arose as Part of the Misclassification Initiative<\/strong><\/p>\n

These memoranda of understanding arose as part of the department\u2019s Misclassification Initiative, which was launched under the auspices of Vice President Biden\u2019s Middle Class Task Force with the goal of preventing, detecting and remedying employee misclassification.<\/p>\n

Contact Vision Payroll Today<\/strong><\/p>\n

Contact Vision Payroll<\/a> if you have further questions on the memoranda of understanding.<\/p>\n","protected":false},"excerpt":{"rendered":"

IRS Commissioner Douglas H. Shulman This week\u2019s question comes from Steve, a small business owner. Steve asks: I\u2019ve read about the Voluntary Classification Settlement Program (VCSP) and its application process with the Internal Revenue Service (IRS). What are the IRS and Department of Labor (DOL) doing about workers who receive 1099s? Answer: The IRS and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[1269,1167,1049,840,586,321,103,13,326,405,104,147,1550,1659,1660,44,89,113,1648,1647,131,119],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6216"}],"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=6216"}],"version-history":[{"count":4,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6216\/revisions"}],"predecessor-version":[{"id":6218,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6216\/revisions\/6218"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=6216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=6216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=6216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}