IRS Cracks Down on Contractors! Protection using a Construction CRM Software
May 1, 2014 | By itadmin |
MaxCon construction CRM software helps account for all documents and information needed in IRS audits for contractors
As anyone who works in construction knows, not every company classifies salespeople, canvassers, project managers, and other workers correctly. Face it, no one wants to pay more taxes than they have to and many independent contractors enjoy the benefits of being able to write off expenses such as cell phones, mileage, and home offices. For years, it has been commonplace for contractors to pay salespeople, canvassers and project managers as “independent contractors, but now the IRS, state governments and the department of labor are cracking down hard on employers who aren’t following the rules.
With an increasing number of contractors being fined steep penalties it is more important than ever to understand the difference between an employee and a legitimate independent contractor. Recently the Department of Labor fined three construction companies more than $100,000 in addition to ordering them to pay back wages to almost 100 employees totaling nearly $500,000. Read More
