Wednesday, October 03, 2012

Presidential Debate/ Voluntary Classification Settlement Program

You all know that tonight there will be a debate between President Obama and Mitt Romney. As a small business owner what would you like to  hear them say?

The IRS recently announced a new program called the  Voluntary Classification Settlement Program. This program will allow taxpayers to voluntarily reclassify their workers from Independent Contractor status to employees. Under VCSP a taxpayer will pay 10% of the amount of employment taxes calculated  under the reduced rates of section 3509[a] of the Internal Revenue Code for the compensation paid for the most recent tax year to the workers being classified under the VCSP. In addition ,the taxpayer will not be liable for  any interest and penalties on the payment under VCSP, and will not be audited for employment tax purposes for prior years with respect to worker classification of workers.
This appears to be a great opportunity for small businesses. You all are aware that the IRS has stepped up their audits in this area. Talk to your accountant about this.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA  94116

No comments: