form 941 and wc insurance is for employees. independent contractors, if used, are not employees. neither is he if his business is not incorporated. If he used ICs, the WC audit may be a check by the state to see that they were properly classified as ICs. Some business improperly classify employees as ICs to avoid the complications of payroll taxes. and the cost of WC insurance. They face big problems if caught because the state will also notify the IRS.
