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Calculating the Cost of Employee Misclassification

An employer's failure to properly classify its workers as employees, rather than independent contractors, could result in liability for years of unpaid wages, insurance, benefits and employment taxes, in addition to penalty fees. Misclassification may also result in employers having to defend costly class-action litigation.

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Tags: employee classification

Independent Contractors & Employees Are Not The Same

According to IRS.gov, if an organization classifies an employee as an independent contractor without a reasonable basis for doing so, you may be held liable for employment taxes for that worker. 

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Tags: employee classification, independent contractors, compliance

Employee Misclassification & the Big Hammer of the IRS

As employers work to find the right talent mix to meet their needs, many are turning to independent contractors, who they classify as 1099 workers instead of W-2 employees, which is fine if they do it correctly. However, mistakes in 1099 classification are costing some of the biggest and best companies huge amounts of money, and other companies have been forced to close their doors. Why? Because the big hammer of the IRS and the legal system is swinging. Don’t let your company get hammered like the following companies did.

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Tags: employee classification, independent contractors, compliance

Misclassified Workers: Taking Steps to Make it Right

It's no secret that the liability of misclassifying workers within a company can be crippling for any organization, regardless of whether or not these employees were mistakenly or intentionally misclassified. In many cases, businesses unintentionally misclassify individuals as independent contractors because they fail to structure, document and implement the engagement so that it complies with both federal and state laws.

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Tags: employee classification, independent contractors