# Voluntary Classification Settlement Program

> Voluntary Classification Settlement Program — 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.

Source: https://lopifi.com/glossary/voluntary-classification-settlement-program
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is 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.

## Also known as

- VCSP

## Words this system refuses for it

- amnesty

- **Category:** Tax
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** liability