Wednesday, June 24, 2009

States, Strapped for Cash, Ramp Up Employment Classification Audits

Mud Is a worker an employee or independent contractor?  The legal distinction between the two often is clear as mud, but the consequence for guessing "independent contractor" when the answer is "employee" can be a huge bill to employers for back wages (especially overtime) and back taxes.  Jerry Kalish writes in BizBox:

[T]ax advisors have been reporting that in addition to the IRS, several states are stepping up their audit and enforcement activities of small businesses to determine if workers are being properly classified. And it’s not just a payroll tax matter for the states, by the way: it’s also about getting employers to pay employment tax on workers the state considers employees.

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https://lawprofessors.typepad.com/laborprof_blog/2009/06/states-strapped-for-cash-ramp-up-employment-classification-audits.html

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