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
