Tonearm - 5:28 am on Dec 17, 2012 (gmt 0)
This article got me thinking about turning my US employees into independent contractors:
Of course, there are important IRS rules to follow. The article above links to this IRS page:
Do you think I could rearrange the way my warehouse works to the point where I could have contractors shipping and receiving instead of employees?
The IRS page above says:
If you have a reasonable basis for not treating a worker as an employee, you may be relieved from having to pay employment taxes for that worker. To get this relief, you must file all required federal information returns on a basis consistent with your treatment of the worker. You (or your predecessor) must not have treated any worker holding a substantially similar position as an employee for any periods beginning after 1977."
I'm not clear on the context in which this is stated, specifically the reference to "relief". Does this mean I can't have a contractor ship and receive if I have previously had an employee ship and receive?