The IRS recently launched a new voluntary worker classification settlement program (in Announcement 2011-64
). Under the program, employers would make a minimal payment and receive significant past payroll tax relief for prospectively treating their workers as employees. To be eligible, the employer must have consistently treated their workers in the past as independent contractors; filed all required Forms 1099 for the previous three years; and not currently be under audit regarding the classification of the workers.
Interested employers can apply for the program by filing Form 8952
, Application for Voluntary Classification Settlement Program, at least 60 days before they want to begin treating the workers as employees.