Voluntary Classification Settlement Program

In accounting, voluntary Classification Settlement Program means the IRS program letting an employer prospectively reclassify contractors as employees by paying 10% of one year's employment tax liability, computed at the reduced §3509 rates — no interest or penalties, and no audit of the prior classification. Applied for on Form 8952.

Layer: Lexicon
Defined in: Lexicon
Also called: VCSP
Nearby: 4

Authority

This definition follows IRS — VCSP.

Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.

For founders

The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.

Contractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.

What it is not called

Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.

amnesty

Nearby in the catalog

No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.