Finding enrolled agent job opportunities requires looking no further than the matters of greatest concern to the IRS. Lately, the IRS has rattled its sabers at businesses that treat workers as self-employed.
Merely calling someone an independent contractor doesn’t mean the business is alleviated from the burden of handling payroll withholding. The IRS can change worker classification to employee status and create severe consequences for the business owner. The penalty for worker classification offenses can rise to 35 percent on top of the required payroll tax.
Identifying situations where workers are incorrectly classified as independent contractors is needed before the IRS discovers them. The task of enrolled agent work in these cases is finding erroneous worker classifications and correcting them. When employee status is correct, confirmation is conducted about mandatory withholding and remittance of payroll taxes.
In addition, some businesses that have genuine independent contractor relationships are not complying with IRS rules. These situations necessitate filing Form 1099 with the government for any contractor paid more than $600 during the year. This is another duty that an enrolled agent can accomplish for a business owner. Fines are levied for failure to file 1099s when required. Moreover, the lack of 1099s bolsters an IRS contention that workers are actually employees.
Because the IRS is targeting businesses suspected of improper worker classification, the value of an adviser with enrolled agent training is rising. Catching the problem early is the best avenue. When misclassified workers are identified by the IRS, taxes are imposed in the amount that should have been paid for employees – including amounts that the business was entitled to withhold from compensation but didn’t.
The IRS guidelines for worker classification are part of enrolled agent study. The general rule is that employees are directed to perform work in a particular manner. Conversely, independent contractors are only given a directive about the expected result without regard to the manner for achieving it.
Many factors are evaluated in deciding worker classification. Each industry has different operational circumstances. Assistance by an enrolled agent is therefore particularly valuable. In addition, an EA can negotiate with the IRS for relief from penalty for improper worker classification in the past.
In a few cases, worker classification is determined by the job description regardless of circumstances. For example, a business may always treat real estate agents and door-to-door salespeople as independent contractors. However, some types of workers are automatically classified as employees. These include corporate officers, full-time persons selling wholesale goods, food and laundry drivers, full-time insurance agents working primarily for one company, and home-based workers who are supplied with material and specific instructions about work assignments.
IRS Circular 230 Disclosure
Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.
Tags: Enrolled Agent, enrolled agent job opportunities, enrolled agent study, enrolled agent training, enrolled agent work
