Worker Misclassification - States lining up like Dominos
According to CNNMoney.com, most states now share data with the IRS and a noncompliance finding by the IRS is likely to lead to issues with state labor
department and other state agencies as well.
All businesses that are trying to avoid paying unemployment insurance funds should take the steps needed to verify independent contractor classifications given the interconnectedness of the federal and state tax agencies as well as the new IRS compliance agenda.
So, you think the problem is the "Feds"? Nope, the states are all lining up in the exploration of revenue through misclassified employees. Over the past month, PSC has tracked articles and reports by; New York, Michigan, Iowa, Nebraska, Ohio, Tennessee, California, among others. Also, Montana, Maryland, New Hampshire & New Jersey have all filed suit against FED Ex for the misclassification of drivers. (a legal filing can be read citing the individual cases that the states are mounting against the Fed Ex Drivers Claim).
Tell us what's happening in your state?
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