The IRS just announced the expansion of its Voluntary Worker Classification Settlement Program (VCSP). This program is a sort of amnesty that allows employers who are paying employees as 1099 contractors, who should really be paid as employees per the criteria normally accepted by IRS and state regulators.
The advantage of this program is that an employer can voluntarily reclassify employees at a minimal cost of about one percent of the wages paid for the last year, without interest or penalties, and the IRS will not audit payroll taxes relating to the reclassified workers for prior years.
If you have “contractors” who should really be classified as employees, please check with your accountant to see if this program is for you. Here is more information.