Questionable employment tax practices ("QETP") are employment tax schemes or practices that have no objective other than to avoid federal and/or state employment taxes.
To help address Questionable Employment Tax Practices (QETP) as well as reduce the shortfall in employment taxes, the federal government and most states have established a collaborative initiative which focuses employment tax filing and payments with an emphasis on worker misclassification. QETP allows the states to share audit reports and related case detail with each other to help identify and raise awareness regarding employers who may be engaging in questionable practices.
To date, the QETP Initiative has resulted in thousands of employer audits with substantial employee reclassification and significant tax payments.
To find out more about QETP, please click thru to the IRS link .AUTO supports compliant employment tax practices and works closely with the agencies to understand the rules and their practical application. For help or guidance in this area, please contact an AUTO member.