If you are a construction company with independent contractors in Illinois, you may want to rethink your strategy. Illinois has a law that makes it difficult for a contractor to have independent contractors. 820 ILCS 185/1 sets the standard for independent contractors and employees. If you believe that your independent contractors are really employees, you need to switch. The IRS has a program to alleviate substantial penalties and interest. It is called the Voluntary Classification Settlement Program (VCSP).
The VCSP is a voluntary program that provides an opportunity for taxpayers to reclassify their workers as employees for employment tax purposes for future tax periods with partial relief from federal employment taxes.
Jeffrey M. Jacobson, Attorney 331-222-9529