Employee classification: Independent contractor or employee for plan p

[Guest Needtokno]

The government and courts have stepped up their investigations and audits of benefit plans to determine employee classification for tax and benefits plan purposes. I am researching this issue, and welcome input, first hand information, and other sources. Please contact me if you have, or need to know, such information.

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www.researchoncall.com

[Lisa Hand]

The Internal Revenue Code and the governing regualtions are pretty specific about who is considered an employee for pruposes of a Section 125 Plan

[SLuskin]

There are a few categories that we might thing were "employees", but are actually considered by the IRS to be self-employed, and therefore ineligible to participate in a Cafeteria Plan: 2% or more shareholders in an "S" Corporation, partners in a partnership and sole proprietors, partners in an LLP or an LLC. Don't forget to use the stock attribution rules for this as well.

[Guest rebecca9]

Has anyone heard of court decisions this year regarding IC's?