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New york unemployment audit

Discussion in 'Business Fundamentals' started by RCSLINC, Aug 23, 2009.

  1. RCSLINC

    RCSLINC Junior Member
    Messages: 26

    Has anybody been audited in new york on sub contractors for plowing and their ruling on trying to make them employees.

    Thank you for your answers
     
  2. EPS

    EPS Member
    Messages: 66

    Randy,


    As far as I know theres nothing they can do about it as long as they have there own insurance and provide there own equipment to complete the job. If anyone knows different I would also like to know.
     
  3. RCSLINC

    RCSLINC Junior Member
    Messages: 26

    Well they got me worried they are trying to make them as employees.
    Would like to know of a ruling in NY as contractors.
    This is in syracuse NY
     
  4. EPS

    EPS Member
    Messages: 66

    The general rule is that an individual is an independent contractor if you, the person for whom the services are performed, have the right to control or direct only the result of the work and not the means and methods of accomplishing the result.

    http://www.irs.gov/businesses/small/article/0,,id=99921,00.html
     
  5. RCSLINC

    RCSLINC Junior Member
    Messages: 26

    Anybody else?
     
  6. PGLC

    PGLC Junior Member
    Messages: 27

    EPS is right on track. If NY pushes this, get yourself a good tax attorney or CPA before saying or doing anything. Remember, the burden of proof is on you, not the government, to prove your position. There are grave consequences to you if the government takes the position that these guys are really your employees. The State will get you for withholding tax and income tax as will the IRS. If you have 1099's for these guys you will possibly keep the income tax adjustment from being made but you will get slammed with withholding tax for sure. As I said, if this is serious, get an attorney or CPA that is experienced in handling tax audits. Good luck!
     
  7. RCSLINC

    RCSLINC Junior Member
    Messages: 26

    Audit is over.
    I did have a CPA,tax Lawyer and a labor atty. all involved.

    Snow plow subs were ruled as such. But as a warning to all they are now looking at landscape and snowplowing businesses.

    have all your paperwork handy and be careful on treating all the subs the same.
    this does not include the rate you pay as a few differences show they are independent.
    With all that was involved it still cost over 5000.00.

    Randy