not just that.. we pay 15% payroll tax on employees but no payroll tax on subs.....
so if the sub doesn't pay their taxes they get all irrate and want to collect the payroll tax from someone even if that someone doesn't legally owe it.
So if an IC should have been classified as an employee then someone should have collected and paid payroll taxes on that employee.
Its all kind of grey area and facts and circumstances (i.e. IC vs. employee) so make sure all the stories are the same and you won't have a problem.