Switch Your Pet Sitting Independent Contractors To Employees With The Blessing of The IRS

Switch Your Pet Sitting Independent Contractors To Employees With The Blessing of The IRS


Right now, you might be sitting there, terrified that something is going to go wrong with your Pet Sitting Independent Contractors (ICs).

One of them is going to get hurt and then come after you for damages? They are going to steal your clients? You are going to get flagged because you have provided too much direction in their jobs?Someone isn’t going to want to pay taxes and try to tell the IRS that they are an employee?


You are just waiting for something to happen.

You have thought about switching your Pet Sitting Independent Contractors to Employees, but have been unsure about how to start that transition, and still worry about even if you do switch if you could still get audited for years past.

So you sit….paralyzed in fear.


Voluntary Classification Settlement Program

But wait… there is hope!  Recently there was a program announced called the Voluntary Classification Settlement Program. (VCSP)  From their website: The VCSP is a voluntary program that provides an opportunity for taxpayers to reclassify their workers as employees for employment tax purposes for future tax periods with partial relief from federal employment taxes. To participate in this voluntary program, the taxpayer must meet certain eligibility requirements and apply to participate in the VCSP by filing Form 8952, Application for Voluntary Classification Settlement Program, and enter into a closing agreement with the IRS.

Businesses around the country who currently have pet sitting independent contractors are going through this program and successfully switching to employees. what the program requests of the business owner:

  • Pay 10 percent of the employment tax liability that would have been due on compensation paid to the workers for the most recent tax year, determined under the reduced rates of section 3509(a) of the Internal Revenue Code. See VCSP FAQ 15, for information on how payment under the VCSP is calculated. Also see Instructions to Form 8952;
  • Not be liable for any interest and penalties on the amount; and
  • Not be subject to an employment tax audit with respect to the worker classification of the workers being reclassified under the VCSP for prior years. (source: IRS)

Sounds like a pretty sweet deal to me!  Check it out and see if it is right for you.

Here is an example that Julie put together:


Part IV Payment Calculation Using Section 3509(a) Rates (see instructions)

18 Enter total compensation paid in the most recently completed calendar year to all workers to be reclassified (see instructions) . . . . . . . . . . . $50,000

19 Multiply line 18 by 3.24% (.0324) . . . . . . . . . . . . . . . . . . . . . . . . $1620

20 Enter any compensation included on line 18 that exceeded the social security wage base for any worker or workers for the most recently completed calendar year (see instructions) . . . . . . . . . . . . . . . . . . . N/A

21 Subtract line 20 from line 18 . . . . . . . . . . . . . . . . . $50,000

22 Multiply line 21 by 7.44% (.0744) [7.04% (.0704) for compensation paid prior to 2013] . . . . . . $3720

23 Add lines 19 and 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5340

24 Multiply line 23 by 10% (.10). This is the VCSP payment you will pay when you submit your signed closing agreement (see instructions) . . . . . . . . . . . . . . . . . . . . . . $534

If you are ready to make the transition from IC’s to employees Jump Consulting has the most extensive program for pet sitters. Over 60 pages with worksheets included will guide you through all you need to know from A – Z.  From pricing structure guides, to employee manuals, to hiring, and managing, it is all there! Also included is the entire program on audio so those of you who can’t find the time to sit down and read it, you can listen while you work, drive, or play.

And last, it is a total myth that employees cost more than independent contractors! You simply need the right type of pricing strategy.

ur blog on this and used it a year ago to switch from ICs to EEs. Best thing I ever did – I sleep much better at night. I also like the added control it gives to the business.


I want to hear from you!

So what do you think? Do you think you would be illegible for this program? Have you been through it? Did you know it existed? Share your story, questions, or comments below!