According to the Internal Revenue Service (IRS), it will hold two free webinars for small businesses on this year’s “Small Business Week,” May 12 to 16. The Webinars focus on several key tax benefits and a special relief program for employers who reclassify their workers as employees.

The webinars will cover payments to independent contractors and filing requirements for Form 1099 on Tuesday, May 13, and avoiding common mistakes on Thursday, May 15. Both webinars will begin at 2 p.m. Eastern Time and last an hour. To register visit the IRS Webinars for Small Businesses page.

Voluntary Classification Settlement Program.

The Voluntary Classification Settlement Program, or VCSP, is available to many businesses, tax-exempt organizations and government entities that currently treat their workers or a class or group of workers as nonemployees or independent contractors, and now want to correctly treat these workers as employees in the future. According to the IRS, to be eligible, an employer must:

  • Consistently have treated the workers in the past as nonemployees,
  • Have filed all required Forms 1099 for the workers for the previous three years
  • Not currently be under audit for employment taxes by the IRS
  • Not currently be under audit by the Department of Labor or a state agency on the classification of these workers. If either IRS or Labor previously audited the employer on the classification of the workers, the employer must have complied with the results of the audit and not currently be contesting the classification in court.

The experienced attorneys at the Law Office of Williams and Associates can advise you as to whether participation in the VCSP is a good idea for your business.

The webinars will also cover the below programs.

Health Care Coverage Credit

Small employers paying at least half of the premiums for employee health insurance coverage may be eligible for the small business health care tax credit. Eligible small employers can claim the credit for 2010 through 2013 and for two additional years beginning in 2014.

Self-Employed Health Insurance Deduction

Business owners who qualify for the self-employed health insurance deduction, may qualify for a deduction for premiums paid for medical, dental and qualified long-term care insurance covering the taxpayer, spouse and dependents.

Simplified Option Available for Claiming the Home Office Deduction

Starting in 2013, people with home-based businesses can choose a new simplified option for figuring the deduction for business use of a home, commonly referred to as the home office deduction.