Hi All, was just on a webinar from our attorney's firm (Fox Rothchild) which was pretty informative. One of the big clarifications and advice on there was surrounding 1099 workers. They don't consider them payroll cost, so they can't be included in that component of the calculation. One of the attorneys on the call has spent 20 years defending IRS audits; he said if you go ahead and try to include them, you are asking for an audit down the road. So evaluate the risk of the IRS reclassifying these from IC to employee in an audit, and the possible penalties, etc. Happy to discuss.
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