The price for misclassifying workers? $83,051,159 — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

The price for misclassifying workers? $83,051,159

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in Office Management,Payroll Management

The Department of Labor (DOL) is working diligently to determine whether you properly classify your workers as employees or independent contractors. Proof: In fiscal year 2013, the most recent year for which figures are available, it secured more than $83 million in back wages for more than 108,000 employees who were misclassified as independent contractors.

That’s not all the DOL is doing.

(Editor's note: This is a good time to download our free step-by-step payroll compliance guide to each pay period, month and calendar quarter of the upcoming year.)

Memoranda of understanding. The DOL began its worker classification initiative by signing a Memorandum of Understanding (MOU) with the IRS. Under the terms of this MOU, it will refer to the IRS investigation information that it believes may raise payroll tax compliance issues. The IRS, at its discretion, may use this information to open audits. Upshot: Investigations could bec...(register to read more)

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