Leader of Pillsbury's Executive Compensation & Benefits practice and nationally recognized lawyer Susan Serota, along with James Klein, counsel in Pillsbury's Executive Compensation & Benefits and Tax practices, outlines the issues of importance for employers, particularly multinational ones, in light of the IRS’s new audit program that focuses on worker classification, payroll tax reporting and executive compensation. The authors suggest that employers must practice consistent determination of employment status, which will affect significant employee benefit, social security, tax withholding and corporate deduction issues. This article originally appeared in the American Bar Association, Section of International Law’s Quarterly Newsletter: The International Employment Lawyer, Issue 20, February 10, 2011.