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Another reason not to misclassify workers as independent contractors

As I have previously pointed out, the U.S. Department of Labor (DOL) and the U.S. Treasury Department have been pursuing cases of misclassification of workers—that is, the practice of classifying a worker as an independent contractor instead of an employee. Employers typically resort to this approach as a means of reducing the employer’s share of withholding taxes—and several other “benefits.” See this previous discussion.

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U.S. Labor Department is serious about misclassification of workers

Just in case you don’t think the U.S. Department of Labor is serious about going after misclassification of workers:

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Employers, beware misclassification of workers

Beginning in approximately 2009, the U.S. Labor Department (DOL) began a crackdown on misclassification of workers. In 2011, the Internal Revenue Service (IRS) joined the effort. Under an agreement between the two departments, the DOL will provide information to the IRS for investigation of potential misclassification.

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