Veeam highlighted that Cloud Connect enables VCSP
partners to offer cloud-based disaster recovery and offsite backup.
Most homeowners filing a Form 1099 for individuals who perform services for them are unlikely to view those individuals as employees, however, and thus will have little inclination to participate in the VCSP
In addition, Announcement 2012-45 eliminated the earlier requirement that a taxpayer agree to extend the period of limitation on assessment of employment taxes as part of the VCSP
is optional and provides taxpayers with an opportunity to voluntarily reclassify their workers as employees for Future tax periods with limited federal employment tax liability for the past nonemployee treatment.
A business that reclassifies workers under the VCSP
must pay 10% of the employment tax liability that would have been due on wages paid to the workers for the most recent tax year using the rules in Sec.
A taxpayer is no longer required to agree to extend the limitation period on employment tax assessment as part of the VCSP
dosing agreement with the IRS.
By way of quirk review, the IRS introduced the VCSP
in September, which allows small businesses to reclassify workers as employees while paying minimal back taxes and avoiding interest and penalties.
was initially established in 2011 (see Announcement 2011-64) and was most recently modified in Announcement 2012-45.
affords eligible taxpayers an opportunity to prospectively reclassify misclassified workers while receiving partial relief from federal employment taxes.
However, the VCSP
is not a taxpayer's only defense against a retroactive assessment of employment taxes.
provides partial relief from retroactive federal employment tax assessments for eligible taxpayers that agree to prospectively treat their workers, or a class or group of their workers, as employees.
Employers accepted into the VCSP
must pay a fee equal to slightly over 1% of the prior year's payroll for the reclassified workers.