My Employer Wants To Claim Me As An Independent Contractor? IRS Consequences?

If your employer has improperly characterized you as an independent contractor and the IRS later reclassifies you as an employee, the consequences can be severe for your employer. The employer will probably owe the IRS an amount equal to approximately 35% of that paid to you. Moreover, even if the employer operates his business as a corporation, he may end up with personal liability for the taxes.

Finally, in addition to employment taxes, your employer may also be liable to you for employee benefits such as pension plan and medical insurance that did not provide you.

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