W-2s vs. 1099s—Who Should be an Independent Contractor in 2025

LIVE ONLINE TRAINING COURSE

Misclassifying workers as independent contractors instead of employees—or vice versa—can lead to significant tax, legal, and financial consequences. In this engaging and practical 2-hour session, tax expert Jason Dinesen walks you through the key factors that determine a worker’s status under IRS, Department of Labor, and state rules. We’ll explore the IRS’s three-factor test, the DOL’s economic realities standard, and the ABC test used by some states.

You’ll learn how to strengthen your position when classifying workers as contractors, how to respond in an audit, and how to handle situations where misclassification is discovered—before or after the IRS gets involved. Real-world examples, court cases, and practical insights round out this essential training for anyone responsible for compliance in payroll, HR, or tax reporting.

SESSION HIGHLIGHTS:

By the end of this course, participants will be able to:

• Differentiate between an employee and an independent contractor using IRS behavioral, financial, and relationship control tests.
• Explain the differences among federal and state classification standards, including the DOL’s test and the ABC test used by certain states.
• Identify key risk areas and Gray zones in worker classification, including the consequences of issuing both a W-2 and a 1099 to the same individual.
• Evaluate the potential for relief under Section 530 and Section 3509 of the Internal Revenue Code in the event of a classification audit.
• Apply best practices for documentation, internal review, and contractor agreements to reduce audit risk and support classification decisions.
• Assess options for corrective action when workers have been misclassified, including the Voluntary Classification Settlement Program (VCSP).

Why You Should Attend:

Many employers misclassified workers, often unintentionally, because they do not fully understand or correctly apply the legal tests used by the IRS, the Department of Labor (DOL), and various state agencies. This may lead to serious consequences, including back taxes, penalties, unpaid wage claims, and potential legal action.

This webinar will serve as a comprehensive guide, helping participants clearly understand how to distinguish between the requirements for classifying independent contractors and employees. Using real-world scenarios and practical insights, the speaker will also shed light on how to evaluate and implement corrective actions in cases of worker misclassification, including guidance on the Voluntary Classification Settlement Program (VCSP).

Who Should Attend:

• CPA’s
• Enrolled Agents
• Tax Professionals
• Bookkeepers
• HR Professionals
• Business Owners
• Accountants

During the Q&A session following the live event, ask a question, and get a direct response from our expert speaker.

Important Notice for our “Live” Attendees: If you have enrolled in the “Live Webinar”, you will get your instruction kit before 24 hours of the live class.

For Recorded and E-transcript Participants: If you have signed up for the “Recorded” class or for the “E-transcript”, you will get access to the “Recording link” or the “PDF” within 24-48 hours of the live class.