Misclassified Independent Contractor Crackdown May Be Worth $7 Billion
The government’s crackdown on companies misclassifying employees as independent contractors may yield $7 billion over ten years, the New York Times reports.
That may be part of the reason the IRS is auditing 6,000 companies to check for these violations.
Companies that make their employees pass as contractors save on unemployment tax, Medicare and social security, which is why it could be an attractive prospect from the employer side. (Employers say it’s not deliberate; that the rules are confusing.
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