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Breaking Benefits News

Leased Employee Non-Compliance.

The IRS recently completed a compliance project on employers’ treatment of leased employees, and found that at least 65% of those sampled incorrectly identified or reported leased employees, or were otherwise improperly accounting for them for benefits purposes. This compliance project likely indicates that the IRS will be focusing on leased employee arrangements in future audit activity. Most errors relating to leased employees are correctable under voluntary compliance programs if addressed prior to IRS audit.

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