Idomeneo » Payroll Tax Audit
Payroll Tax Audit
The IRS is launching a nation wide employer audit in February 2010. Are you prepared?
What are they looking for?
- Accurate records and payment of Federal withholding taxes, such as Social Security, Medicare and Federal Unemployment.
- Worker classification – are your workers properly classified. Independent contractor status will be closely reviewed.
- Fringe benefits – health plans, life/accident benefits, educational assistance, meals, transportation benefits. All will be carefully reviewed for proper documentation and determination as to whether they are considered taxable wages.
- Reimbursed expenses – your expense policy and process is subject to audit.
- Compensation of Owner Employees – proper payment to owners of closely held corporations.
- Forms – completeness and accuracy of various forms, including W-2s
6,000 employers will be randomly selected for this initial audit. And, as Federal and State agencies look for additional sources of funding, the frequency of audits is expected to increase dramatically.
In September the US Government Accountability Office (GAO) released a report urging the US Department of Labor and the IRS to increase ‘their efforts to probe the improper classification of workers” as independent contractors.
We can help you prepare for audit season, without breaking your budget.
Give us a call today, we are HR experts and we are here to free you from the complexities of labor law.
310.308.7680 option 3
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