IRS to Audit Firms for Misclassifying Employees as Independent Contractors

Author By Steve Brechter
misclassifying employees

The Gray Stone Advisors team is providing this urgent “heads up” regarding increased vigilance by the Internal Revenue Service (IRS) on the misclassification of independent contractors.

Misclassifying Employees

This issue was addressed in the Aug. 27 NBAA Newsletter entitled “IRS Tightens Scrutiny of Worker Misclassification.”

There are many instances in our industry where unintentional employee misclassification can occur, given the widespread use of contract pilots, flight attendants and, in some cases, maintenance technicians. In many cases, this use occurs on a long-term basis.

An audit by the IRS revealing the existence of misclassifying employees in your flight department would be the last thing you or your parent company needs.

There are clear guidelines on worker classification that are provided by the IRS on their website.

We strongly suggest that you review each contract employee used within your flight department against the guidelines to make sure that you are in full compliance with the law.

Feel free to contact us if you have any questions or would like additional perspective.