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ARTICLE · 18 OCTOBER 2017

Worker Classification Matters

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Many employers mistakenly believe that the misclassification of employees as independent contractors does not really matter, so long as contractors satisfy all of their tax obligations.

United StatesEmployment and HR
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Many employers mistakenly believe that the misclassification of employees as independent contractors does not really matter, so long as contractors satisfy all of their tax obligations. However, this could not be further from the truth. This article explains the stakes involved when employers classify workers as employees or independent contractors.

Independent Contractors vs. Employees

Many employers mistakenly believe that the misclassification of employees as independent contractors does not really matter, so long as contractors satisfy all of their tax obligations. However, this could not be further from the truth. Improper classification of workers comes at a high cost and both federal and state authorities have been cracking down on the practice in recent years. We have found that during IRS exams this is an area typically focused on by agents.

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