IRS VCSP Explained | Fix 1099 vs W-2 Mistakes & Reduce Payroll Penalties

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Podcasts Education IRS VCSP IRS Voluntary Classification Settlement Program 1099 vs W2 explained worker misclassification IRS Form 8952 application IRS payroll compliance small business payroll mistakes IRS audit prevention tips payroll tax penalties IRS

Misclassifying 1099 contractors as employees can snowball into IRS audits, payroll tax debt, and costly penalties. But the IRS Voluntary Classification Settlement Program (VCSP) gives business owners a rare second chance.

In this episode of Full Throttle Financeâ„¢, Felicia and Alli explain how the VCSP works and why it matters for small businesses, race teams, and contractors:

✅ The IRS rules for 1099 vs. W-2 classification
✅ Real-world examples across motorsports, construction, and hospitality
✅ How the VCSP reduces liability to 10% of last year’s contractor pay
✅ Step-by-step eligibility and how to apply (Form 8952)
✅ Why correcting worker misclassification protects your business from audits and lawsuits

📌 New episodes drop every Friday. Follow along for payroll strategies, tax credits, small business finance, and motorsport money management.

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