Tax reform raises questions on employee classification

December 27, 2017 0 COMMENTS

HRDA independent contractorNow that President Donald Trump has signed the bill overhauling the U.S. tax code, employers are on a tight timetable to react to the new law before the bulk of it takes effect on January 1, 2018. Besides requiring employers to deal with new payroll forms (including the IRS’s W-4) and other changes, the new law sparks many other questions for employers. Among them: How might current employees wish to change their classification status?

William C. Foley, an attorney with Axley Brynelson, LLP, in Madison, Wisconsin, says employers certainly will be interested in new forms and guidance from the IRS and how the new tax law will affect their fourth-quarter financial statements. But it’s unclear when the IRS will be able to issue revised forms, and relief may be available on financial statements. But there’s a different issue—related to the employment relationship—that also requires thought and planning, Foley says.

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