Reminder: IRS To Search For Misclassified Contractors Next Month

Random audits are coming for employers over the next three years starting next month; the IRS will be checking for “tax noncompliance” in all sorts of areas like fringe benefits and expense reimbursements, but also in worker classification.

What does this mean for you, a freelancer?

This is kind of a long, legalese-heavy post, so we’ve politely put it after the jump for you.

If a company classifies you as a freelancer instead of an employee, they save money because they’re not paying you benefits; the company also saves on employment taxes that should go to Uncle Sam.

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