Price your three exits from a worker misclassification

Section 530, the VCSP, or the audit - what each one actually costs you

Cheapest exit you actually qualify for	—
What that exit saves you	—	USD
VCSP payment on Form 8952	—	USD
Exposure if you do nothing	—	USD
Section 530 safe harbour	—
Form 8952 filing deadline	—
Which section 3509 rates applied	—

Your numbers — every field below rewrites the answer above as you type.

Compensation paid to this class of workers in the most recent tax year USD How many workers are in the class people Most recent tax year Date you want them to become employees Forms 1099 for these workers, last 3 calendar years Your reasonable basis for treating them as contractors Share of your industry, excluding you, that treats this role as a contractor % A substantially similar role was on a W-2 at some point since 1978 You are currently under an IRS employment tax examination Past years still open to assessment years

Section 530 safe harbour check
Tests all three statutory conditions - reporting consistency, substantive consistency, reasonable basis - and names the exact prong you fail, using the 25% significant-segment and 10-year long-standing definitions the IRS set in Rev. Proc. 2025-10, its first update to Section 530 in 40 years.

VCSP settlement amount
Computes the cheque you would write on Form 8952: 10% of the section 3509(a) liability on the most recent tax year, with the social security wage base applied per worker, and tells you whether the 1099 and open-examination gates leave the programme open to you at all.

Do-nothing audit exposure
Prices the other choice across the open years at section 3509(a) or 3509(b) rates plus FUTA, so the settlement figure has something to stand next to.

Form 8952 120-day deadline
Works back 120 days from the date you want the workers to become employees, says whether that filing date has already gone, and gives the earliest start date still reachable if you file today.

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