How to Take Advantage of the Section 530 Safe Harbor for the Misclassification of Independent Contractors

Author: Marci E. Britt, Fisher Phillips

In the event a worker has been improperly classified as an independent contractor, Section 530 allows an employer to utilize a safe harbor provision to avoid paying unpaid employment taxes, penalties and interest. The safe harbor provision requires that certain things occur both before and during the contractual relationship. This How To is simply an overview of the Section 530 safe harbor provision and should not be solely relied upon to determine applicability of the provision to any particular situation. Consultation with an experienced attorney or accountant is strongly recommended.