SLS represented a client in proceedings with the Missouri Division of Employment Security (“DES”) which, among other things, is responsible for enforcing regulations related to unemployment taxes. Based on its investigation of an SLS client, the DES reclassified twelve workers of the company from independent contractor status to employee status, and assessed unemployment tax against SLS’s client for those workers in each of four years. If the DES’s worker reclassification was upheld then the tax liabilities payable by SLS’s client would have been sizeable. In addition to the assessment of unemployment taxes, the DES’s reclassification of these twelve workers likely would have resulted in assessments of federal, state and local income tax withholding, payroll taxes, penalties and interest against SLS’s client for the reclassified workers.
SLS represented the company before the DES Appeals Tribunal in opposing both the reclassification of workers and the assessment of unemployment taxes. The Appeals Tribunal ruled in favor of SLS’s client and reversed the DES’s reclassification of the company’s workers. The ruling provided SLS ‘s client with complete relief from tax liabilities.
If you have needs with tax planning or litigation, please call Dan Runion, JD, CPA, at 816-931-0500.