Is there a penalty for misclassifying my homeschool group’s workers?
- Is your homeschool teacher an employee or independent contractor?
- What happens if my homeschool group misclassifies a worker? Are their penalties?
The IRS imposes strict penalties on an employer who treats workers as Independent Contractors when they should be employees. These penalties have put homeschool businesses and nonprofits out of business. Carol Topp, CPA discusses this topic and some programs the IRS has to avoid crippling penalties.
In the podcast I mentioned the the IRS Voluntary Classification Settlement program (VCSP). This blog posts explains the program:
IRS amnesty program for employers (how to avoid penalties for paying workers as Independent Contractors)
Worker classification can be a confusing topic.
My book Paying Workers in a Homeschool Organization can help clear a lot of confusion