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Using independent contractors? Consider the Voluntary Classification Settlement Program (VCSP)

Many businesses are learning that the workers that they thought were independent contractors are being re-classified as employees by the IRS and courts. There have been many myths about independent contractors that have caused businesses to misclassify the workers. The truth is that independent contractors must be in business for themselves - take entrepreneurial risks and get enterpreneurial rewards. Businesses cannot "do something" to make their workers independent contractors - it is like putting lipstick on a pig and calling the result a horse.

In the past, it has been very costly for businesses to correct this mistake - because they would be charged huge penalties that threatened the business's financial future. So, in 2011, the IRS launched a Voluntary Classification Settlement Program (VCSP), that allows businesses to pay less than 10% of what they would owe if they are audited and caught by the IRS.