Home > Field Audits, workers compensation compliance, Workmens Compensation > Beware of Employer Compliance Audits

Beware of Employer Compliance Audits

Dear Bookkeepers, Quick ProAdvisorss, Accountants, Payroll Companies, and CPAs:

Then best advice I can give you is to red flag your client when you create an IRS Profit and Loss schedule and fill in two fields: Contract Labor and Cost of Goods Sold. It is this: Ask them if they have a workmen’s compensation policy. You just saved them $4,000 for being labeled an Unregistered Employer. That’s your responsibility.

This is the cheap penalty. The other one is for one to two times the assessed premiums. In other words, you are not doing due diligence and better buy some errors and omissions insurance.

Granted , you are not going to pay the taxes owed from this audit. It is only a matter of time before you do get sued by your client or the legislative bodies make this a fiduciary administrative code.


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