Regardless of the size of your company, worker misclassification should be on the list of concerns you are addressing.
Many companies misclassify their workers as independent contractors rather than employees, creating tremendous financial risk.
The Department of Labor (DOL) has estimated that 30% of employers may be misclassifying their workers, while other industry experts feel the percentage is even higher.
Misclassification—whether unintentional or deliberate—is under increased scrutiny by multiple government agencies, especially the Internal Revenue Service.
The IRS has good reason for ramping up its investigation and enforcement of misclassification; it is seeking to recoup what it estimates is billions of dollars in lost tax revenue as a result of workers being misclassified. And state agencies are on a parallel campaign to fill their coffers.