The IRS has come out with a warning to IT consultants in the U.S, that they will be keeping a watchful eye on them over the next few months in an attempt to curb the companies from laying off workers and then re-employing them at a later stage as consultants.
This would therefore allow the companies to escape paying the benefits and would also shift the payroll taxes to the workers.
The IRS has warned they will be stepping up measures to curb these practices and they would also be issuing guidelines as to how to audit these concerns properly.
Source: Tax-News.com