Hi,

I just began working for a company in Massachusetts as the HR manager. The corporate office employs 4 people, all on 1099s. They are wanting me to transfer all of those 1099 employees to full-time W-2 employees.

What are the consequences for doing this? I know it will raise a red flag with the IRS, but what are the tax implications we could encounter with this? Would it be better to wait until 2014? What would the fines/fees associated with this transfer be?

Honestly, these people should not have been on 1099 to begin with, but, I can't change that now.

Please let me know your thoughts.

Thanks

AB