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Advise Client Companies to Review Payroll Practices

September 10, 2010, Verizon Small Business Center's News & Resources
The IRS has launched an initiative to conduct payroll tax audits for 6,000 randomly selected companies.

February 2010 marked the start of a new IRS initiative on employment taxes. The IRS will select at random approximately 6,000 companies nationwide for a payroll tax audit. The audits will focus on whether companies are paying all of their required employment taxes that fund Social Security and Medicare. The IRS wants to know how many companies are misclassifying employees as independent contractors and failing to pay taxes on fringe benefits. This initiative is expected to last for three years. Click here to read the full text of the article.