IRS Subcontractor Laws

By Robert Robillard on Contractor Advice


IRS To Step Up Enforcing Subcontractor Laws

Over the years many small contractors misclassified their employees as subcontractors and in doing so avoid having to pay workers compensation , SSI Medicare, Unemployment, withhold taxes and pay other insurances.

Recently the IRS has announced that it will start to randomly audit 2,000 small businesses and an additional 2,000 in each of the following two years in an attempt to enforce it’s newly formed Employment Tax National Research Program.

The IRS has estimated to gain $7 billion over the next 10 years. IRS plans to spend $25 million to hire an additional 100 agents.

My next post will deal with how to determine if someone is an employee or a subcontractor…….

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About the author

Robert Robillard

Robert Robillard

Carpenter / Remodeler / Editor / Writer / Video Talent

Robert Robillard is a general contractor, carpenter and operates a remodeling company located in Concord, MA. He is the editor of and ToolBoxBuzz, and a has a weekly column in the Sunday Boston Globe. Rob is a recognized leader in tool and how-to information for building professionals, he hosts the Concord Carpenter Cable TV Show, offering advice on home repairs and maintenance. On his website, Rob uses his knowledge and experience to help and educate on best practices in the remodeling industry. His motto: “Well done is better than well said!”. Contact Rob at:

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