by Craig Brandt, Esq.
The federal Government Accountability Office (GAO) recently released a detailed report to congressional leaders that culminated in a set of recommendations to address the persistent, widespread problem of employer misclassification of employees as independent contractors.
The report—read it at www.gao.gov/new.items/do9717.pdf—urges the U.S. Department of Labor and the IRS to step up enforcement efforts against employers.
Given the increased attention, now is a particularly opportune time for employers that have classified any workers as independent contractors to carefully review those decisions.
A variety of violations
While most workers are treated as employees and paid accordingly, in 2005 approximately 10.3 million U.S. workers (7.4% of the workforce) were classified as contractors.
While misclassification of employees as independent contractors isn’t itself illegal, it can cause viol...(register to read more)
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Small Business Tax Deduction Strategies
- Consider phased retirement process to retain expertise
- IRS ups the mileage rate
- Manage interplay of all state and federal laws affecting pregnant employee's leave rights
- No postponement of charitable deductions