SL 60001.615 Section 530 of the 1978 Revenue Act
Section 530 of the Revenue Act of 1978 provides, under certain circumstances, employers relief from Federal employment tax obligations when IRS determines the employer misclassified employees as independent contractors.
The Section 530 provision does not apply to State and local government employers covered under Section 218 Agreements. However, State and local government employers whose workers are subject to the mandatory Social Security and Medicare tax provisions are eligible for Section 530 treatment.
Refer to IRS questions concerning the Section 530 provision.