Independent Contractor Vs. Employee: What Happens If I Misclassify My Workers?
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Manage episode 313370795 series 3268618
Either way, regardless of your reasoning, it’s illegal to do so. If the state approaches you, the Department of Labor, the IRS, or any other agency that has a stake in how you classify your workers, it will cost you dearly in penalties and interest.
What’s even more devastating is that because there’s more than one jurisdiction over payroll, if you are audited by one of those jurisdictions and the audit ends with the reclassification of workers, you should expect to hear from most if not all of the other jurisdiction who have a stake in how you classify your workers. For example, if the Department of Labor is first to audit you and the audit ends in the reclassification of workers, you can rest assured that the state and the IRS are not too far behind………….
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