Past payroll tax relief provided to employers who reclassify their workers as employees.
The Internal Revenue Service announced that they will be launching a new program that will help employers resolve past worker classification issues. They will be able to achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers.
This program allows the employers the opportunity to get into compliance by making minimum payment covering past payroll tax obligations rather than waiting for an IRS audit. The IRS created this "Fresh Start" initiative to help taxpayers address their tax responsibilities.
The Voluntary Classification Settlement Program is designed to increase tax compliance and reduce burden for employers by providing greater certainty for employers, workers, and the government. Eligible employers under this program can get relief from federal payroll taxes they have owed in the past.
To read the full details visit the Employment Tax pages of IRS.gov.
