Misclassification Evaluations Are a Response To Growing Concerns in the Corporate Sector In Regards To the Announced Government Crackdown On Employee Misclassification
Atlanta and Ottawa (PRWEB) August 2, 2010 -- Payment Services Corporation (PSC), a preferred PEO (professional employer organization) service company, is now offering North American companies a free contractor misclassification risk evaluation. This comes in response to growing concerns in the corporate sector in regards to the announced government crackdown on employee misclassification, and the fines that accompany those companies found in violation. After fines in the millions of dollars were levied on companies like Fedex, UPS, Microsoft and others, many company leaders across the United States and Canada are anxiously wondering if they too may be at risk. This free service will establish whether a company is potentially exposed to violations and offer possible corrective action plans in order to avoid heavy financial penalties.
“Some companies are aware of their misclassification problem, but many more aren't and the cost associated with employee misclassification violations is steep. This free service is intended to offer both groups better clarification of just what their risk level might be, and offer some insight into what programs should be implemented to avoid misclassification fines from the government.”
Beyond the free risk evaluation, PSC’s service offering is singularly that of a PEO or Professional Employer Organization. It is their key differentiator in comparison to a staffing company. PSC provides 3rd party independent contractor engagement and billing services such as:
to those corporations who are manning their Independent Contractor population on their own, bringing known independent contractors back from previous projects or pay rolling independent contractors through staffing companies for long periods of time. This coordinated approach consolidates vendors into one vendor relationship that not only removes the risks associated with misclassification but can also represent significant processing time and cost savings to the client through unified invoicing.
"We provide our clients with a service program that eliminates misclassification risks and saves our clients both time and money,” said Ted Weyn, Managing Partner at PSC. “Our service packages streamline our clients operations and allow them to focus on their core business activities.”
Visit www.paymentservicescorp.com for further information on services and www.paymentservicescorp.com/blog/ to read their latest posts on the PEO services industry.
Bad-Acting Employers Shirk Taxes, Deny Workers' Rights
WASHINGTON, June 17
/PRNewswire-USNewswire/ -- The Teamsters Union supports efforts by the U.S. Senate to crack down on businesses that illegally
classify their employees as independent contractors, an egregious practice that companies use to avoid paying millions in state and federal taxes.
The Senate Health, Education, Labor and Pensions Committee
held a hearing today to discuss efforts to crack down on the growing problem of misclassification. More than 40 states are currently looking into ways to punish bad-acting employers who misclassify workers, and 15 states have said that collectively, misclassification costs them $3.2 billion annually.
"Irresponsible employers who misclassify workers do this for one main reason: to avoid paying their share of state and federal taxes so they can pad their profits," said Teamsters General President Jim Hoffa. "These companies also hurt workers by not properly giving them the benefits they deserve as full-time workers."
"Workers who are misclassified as independent contractors get no sick time, vacation, health benefits or any of the rights or legal protections afforded to full-time employees under the law," Hoffa added. "The Teamsters are determined to make sure this practice comes to an end."
The Teamsters have been waging a successful campaign to battle misclassification. In April, the Nebraska Legislature passed a bill making it illegal for employers to improperly classify workers as independent contractors. Teamsters Local 554 in Omaha, Neb., worked for nearly two years to get the bill passed.
Other states have been making great strides in fighting misclassification. In Nevada, the State Commission on Misclassification adopted recommendations on bad-acting employers that included fines of up to $25,000 per misclassified worker. It also has recommended the creation of a state misclassification task force.
In just one year, the Iowa Workforce Development Agency found 182 employers out of 251 investigated had misclassified 1,565 workers. The agency recouped more than $1 million in taxes and $342,000 in penalties.
In Vermont, a new law mandates that the Labor Department must issue a stop-work order if an investigation reveals that there are workers who are not covered by workers' compensation insurance. The new law also enhances existing penalties and adds new ones, including civil and criminal fines and imprisonment for violating a stop-work order.
At the Port of Los Angeles, truck drivers work long hours, but are paid by the load because they are classified as independent contractors. If they are hurt or sick and cannot work, they are not paid. It's no wonder their trucks have been called "sweatshops on wheels."
The Teamsters also praised other efforts to crack down on misclassification. In April, a bill was introduced that would make worker misclassification a violation of federal labor laws. Another bill would close the tax loopholes that let businesses off the hook for misclassification. And the Obama administration has proposed a new Labor Department initiative to step up enforcement and help states that are doing a good job of going after violators.
Each year, more than $4.7 billion in federal income and employment tax revenue is lost due to misclassification and billions more are lost at the state level.
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico. For more information, visit www.Teamster.org.
SOURCE International Brotherhood of Teamsters
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