The Inflation Reduction Act of 2022
The President recently signed into law the Inflation Reduction Act of 2022. This legislation will not only deal with Medicare’s drug price negotiations but will also deal with the ever-important climate change issue. Let’s look at what this legislation has to offer:
Changing Employees to Independent Contractors? What are the Ramifications?
An employer made the decision to change the status of their workers from employees to independent contractors and it ended up backfiring.
An at-home nursing service provider owed almost $1.3 million in back employment taxes and penalties for a misclassification of 99 nurses. The taxpayer, for reasons that were unclear, made the decision in 2016 to switch their employees to independent contractors. After this decision, in the years at issue, the taxpayer did not make any federal employment tax deposits due to their change in the employment status of their workers.
In addition to granting tax refunds of $700 to qualifying taxpayers with California AGI up to $250,000 ($500,000 HOH), this bill also authorizes up to $1,050 for MFJ taxpayers who have California AMI over $500,000. The only downside is the payments will not arrive until the end of October (at the earliest).