With the talk about increasing the federal minimum wage, some businesses may consider trying the reclassify their employees. Is this a good idea to save some money? The Internal Revenue Service has tests that determined whether an individual is an employee or an independent contractor. Marcelino Dodge, EA discusses these tests and what the potential consequences could be for businesses that fail to properly classify and pay their employees in this special episode of The Tax Answers Advisor. The costs to your business of not properly classifying your employees can be very devastating if the IRS or a state department of labor does an audit.
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