Hello Professionals.
I do payroll for a local non profit that I am a member of. The non profit in question has all the local business as members and is established to promote and protect the interests of its businesspeople members.
I was informed this week that they are reopening. Then they told me that the program director that has been a w-2 employee in 2019 and some in 2020 will be considered an independent contractor for 2021. On the phone I told the current president that I believe the program director should be categorized as an employee. I went through all the factors here ( https://www.irs.gov/newsroom/understand ... lationship.) and told her that the board should contact a labor lawyer.
I was told that there is not enough money to pay wages so they are making the change no matter what. I have a few questions as to how I should proceed.
If something goes wrong and the IRS determines that the program director should be an employee could I be held responsible? I am a member (not on the board) and have access to the EFTPS and state payment systems and print the payroll checks. I don't believe any of these by themselves would be an issue but I am not sure if combined, could be liable for penalties and the like?
The only contact that I have had with the non profit is a phone call with the president. Should I send a letter or at least an email telling them to my opinion and telling them to talk to a labor lawyer.
Sorry for taking up anyone time who is reading this because I am just trying to cover my butt. Any incite would be welcome.