Staff Augmentation (hiring Independent Contractors) is an effective alternative to full-time staffing that provides our clients immediate results, reduced liability and limited commitment on their part. We immediately have hundreds of professional consultants ready for deployment that are experts in all areas of Development, Quality and Deployment. We handle everything, making available Medical, Dental and 401k benefits, and withholding all appropriate State and Federal taxes for each Independent Contractor hired. You only need to be concerned with selection and assignment of talent that we introduce to you – simple!
U.S. Cracks Down on ‘Contractors’ as a Tax Dodge!
If your business leverages temporary staff (Independent Contractors) you might have misclassified workers on staff and you should know that the IRS is cracking down. The New York Times claim that the Federal Government has started a program to audit up to 6,000 companies over the next three years for misclassified staff workers. The Feds estimate these audits could yield more than $7 billion in fines, penalties and back taxes.
Businesses generally are required to withhold Income, Unemployment, Social Security and Medicare taxes on wages paid to all individuals on your payroll. If you’re not withhold taxes for temporary staff and fail to meet strict classification guidelines set by the IRS, then your business might be at risk for back taxes, fines, penalties and interest accrual for each violation.
New York Times reports U.S. cracks down…
CNN reports Auditors crack down…
IRS Guidelines for hiring Independent Contractors…
Verticalmove can help with IRS compliance.
Let Verticalmove become the ‘Employer of Record’ and keep your business compliant with all IRS regulations for hiring temporary staff (Independent Contractors). Please get in touch for more information regarding our Staff Augmentation services click here:
