By Nicholas Contompasis
Per Announcement 2011-64, the IRS is giving organizations the opportunity to reclassify volunteers and subcontractors as employees and will be allowed to waive all payroll taxes for these individuals.
The end product of this type of policy is artificially lowerIng the unemployment rate by creating jobs that are simply volunteer work or non-employee services.
Seems like more tricks from Tim and the President. Follow the link to todays announcement from the IRS. http://www.irs.gov/pub/irs-drop/a-11-64.pdf
"Announcement 2011-64 provides notice and details regarding a new Internal Revenue Service Voluntary Classification Settlement program that provides partial relief from federal employment taxes for eligible taxpayers that agree to prospectively treat workers as employees.
Announcement 2011-64 will be published in Internal Revenue Bulletin 2011-41, dated Oct. 11, 2011."
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