Employee vs. Independent Contractor Crackdown

The IRS, DOL, and various state agencies announced that they have entered a series of information-sharing agreements in their joint efforts to crack down on misclassification of workers as independent contractors.

Employers will sometimes use the independent contractor (mis)classification to avoid paying employer-side payroll taxes and subjecting themselves to employment laws that don’t apply outside the traditional employment relationship.

While various federal agencies (particularly the IRS) have focused on this issue in the past, it’s clear that the full force of the government will be on the lookout for misclassifications now. Employers must take the time to review their existing classifications to ensure their independent contractors and employees are classified correctly.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s