Worker Classification – Employee vs. Independent Contractor

Course Classification:

• Category: Federal Tax (T).

• Credits: 2 IRS Continuing Education Hours.

• Provider: EZ Tax To Go LLC (Provider Number GFLRH).

Summary Description:

Protect your business clients from one of the most costly and severe IRS audits. This Worker Classification course provides you with the tools to correctly evaluate working relationships, distinguish between employees and contractors (Form W-2 vs. 1099-NEC), and mitigate the risk of massive penalties for back payroll taxes. Position yourself as a high-value advisor by helping businesses structure their hiring safely and legally.

What will you learn in this course?

• The IRS Test (Common-Law): Master the three critical factors: Behavioral Control, Financial Control, and Type of Relationship, to accurately evaluate any working contract, going beyond a simple “label” or written agreement.

• Defense and Safe Harbors (Section 530): Learn how to use Section 530 relief to protect a business from retroactive liabilities, understanding how the recent Revenue Procedure 2025-10 clarified documentation standards.

• Problem Resolution (Key Forms): Know how to guide your clients through the Voluntary Classification Settlement Program (VCSP) to correct errors with reduced penalties. Understand when and how to use Forms SS-8 and 8919.

• Specific Scenarios and Red Flags: Identify the dangerous “rebadged employee” pattern, the special treatment for real estate agents (nonstatutory employees), and common traps with domestic workers (nanny tax) and interns.

• Risks Beyond the IRS: Understand how misclassification can impact state audits (such as the strict “ABC test” in California), workers’ compensation insurance, and Affordable Care Act (ACA) mandates.

Enroll today to offer a proactive and strategic service that protects the financial future of your business clients!