August 18, 2020
Special 2 hour Continuing Education – Free to COSEA members
IRS rules for Contractor (1099) vs Employee (W-2)
Taught by COSEA member Tanya R Baber, EA, CTRS, NTPI Fellow
Tanya is a Senior Tax Consultant with TaxEdge (www.taxedge365.com) in Delta, CO. She is a nationally recognized tax professional and frequent speaker on a variety of tax topics and representation. She founded Tax Edge, an accounting, tax, and representation firm and has been practicing over 27 years, giving her a wide range of knowledge and experience from which to draw.
Independent contractors can potentially save your clients money, but with increased IRS scrutiny, they could be at risk for increased penalties and liability. Can you be sure you understand the difference between an employee and independent contractor? This is a comprehensive 2-part webinar that will help you understand the differences between an employee and independent contractor.
Attend this informative session and increase your understanding. Develop your skills to keep your clients audit-ready and in compliance, and determine a worker’s status correctly every time without concern, which will help them to avoid penalties.
Independent Contractor vs Employee – Part One
Defining the Employee and understanding misclassification liability as well as the IRS VCSP (Voluntary Classification Settlement Program)
What are the advantages and disadvantages of each classification, and also what are statutory employees and contractors. We will also cover risks of misclassification and potential liability, when to issue a 1099-MISC vs. a W-2, and learn practical hands-on tips to keep in compliance. You will also gain insight into the IRS VCSP (Voluntary Classification Settlement Program), and when it might be a great approach for a client already in trouble.
- Understand the advantages and disadvantages of hiring independent contractors vs employees
- Learn about the liability of employee misclassification
- Discover the VCSP (Voluntary Classification Settlement Program) and the qualifications and advantages
- Learn about the Memorandum of Understanding (MOU)
- Understand what a statutory employee or contractor is
Independent Contractor vs Employee – Part Two
Defining the IRS 20 Factor and the Court 8 Factor determinations, Study Court Case Examples, Form SS-8, and learn about Safe Harbors that might apply
How do the IRS and the courts determine the worker status of an individual, and what are a few Safe Harbors that could be used. We will cover the IRS 20 Factor test, the Court 8 Factor test, and then apply those tests to court case examples to allow you to test those skills and see those tests applied in real life examples. You will also gain insight into how the Form SS-8 is used for making a determination of status, §530 rules, and Safe Harbors that could apply.
- Learn the IRS 20 Factor test
- Discover the Court 8 factor test, and how it differs from the IRS one
- Review 4 Court Cases and outcomes to see these test applies in real life examples.
- Learn Safe Harbor rules and when to implement them
- Understand the Form SS-8 and how it is used in determination of worker status
Tanya R. Baber, EA, CTRS, NTPI Fellow
Enrolled Agent, Certified Tax Resolution Specialist, National Tax Practice Institute Fellow
Tanya is a nationally recognized tax professional and frequent speaker on a variety of tax topics and representation. She has been an Enrolled Agent with the IRS since 2006 and received her Bachelor’s degree in Public Accounting and Business Administration from Colorado Mesa University. Tanya founded Tax Edge, an accounting, tax, and representation firm in her hometown of Grand Junction CO, expanded it to a second office in Delta CO and has been practicing over 27 years now, giving her a wide range of knowledge and experience to draw from. She helps guide clients across the US and even a few internationally in the areas of accounting and payroll, personal, business, and non-profit tax preparation, planning, consulting and representation as well as solving their complex tax problems.
Tanya is a CTRS – Certified Tax Resolution Specialist, a NTPI Fellow, and is a member in good standing of the National Association of Enrolled Agents (NAEA), National Society of Accountants (NSA), The American Society of Tax Problem Solvers (ASTPS), the National Society of Tax Professionals (NSTP), and the National Association of Tax Professionals (NATP). She also serves on the board of directors for a variety of local and national non-profits and volunteers with Search and Rescue in Mesa County to give back to her community.
Ms. Baber enjoys teaching advanced level classes to CPA’s, Enrolled Agents, Accountants, and other individuals seeking continuing education credits. She also consults with many accountants on their own resolution cases and provides solutions for their client’s tax and representation difficulties.