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the IRS currently has a program called a voluntary classification settlement program if you feel that you might be a risk of having your workers reclassified this is a good program for you to join basically what it allows you to do is to come forward and voluntarily reclassify your workers on a go-forward basis and for prior periods you have to pay just a small penalty which is essentially equal to ten percent of the tax taxes owed for one worker for one year as opposed to having to pay all the taxes for all the workers for potentially up to three years in addition to penalties and interest the way this comes up a lot of times is that a former worker will file whats called a form ss8 which asked to IRS to come in and determine whether they should be an employer or an independent contractor if a worker files a form s si you know theres a good chance of the IRS may ought to you so its a good time to join the program and this is not considered an audit in and of itself so youre still