U.S. Crackdown on Independent Contractors

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There’s a shift happening with increased enforcement action and investigation going on into businesses with independent contractors. There’s lots of money at stake here which is why the IRS is doing this costly enforcement action.

Just in New York alone there’s “more than 31,000 instances of misclassification and assessed $11 million in unpaid unemployment taxes and $14.5 million in unpaid wages.”

That is just in 1 state. This is happening all over the country with misclassification of employees as contractors. Sometimes it’s purposeful fraud and others the employer just doesn’t know the law.

Resources:

1. U.S. Cracks Down on ‘Contractors’ as a Tax Dodge

2. Independent Contractor Crackdown Heads to Florida

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