Worker misclassification is a perennial issue for the
Internal Revenue Service and state taxing authorities due to the perception
that many employers are not properly classifying their workers.
By avoiding labeling their workers as employees, employers
also avoid paying minimum wages, overtime, payroll taxes, worker’s
compensation, unemployment, Social Security contributions, health benefits,
paid leave, 401(k) benefits and unpaid leave under the Federal Family and
Medical Leave Act. And workers have some benefits to being considered
independent contractors, such as the ability to deduct certain business
expenses that are not available to employees, the ability to set up their own
retirement plans, and the fact that they are not subject to withholding. Of
course, many workers want to be considered employees so they can get the
benefits due employees, such as vacation pay, overtime pay and health
insurance.
Questions: http://rehcpas.com/
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