Bill Characterizes (workforce) Misclassification as “Payroll Fraud”
Senate Re-Loads With New Bill on Independent Contractor Misclassification
As we reported last year, the misclassification issue of independent contractors will not be going away and that overtime, the issue will intensify in its pursuit. The prize is too big in the government’s eyes to let this one go. This is demonstrated by this article showing that after two failed attempts, the Senate is taking another attempt by now calling this issue “payroll fraud”. What’s next in this pursuit? Tar and feathering?
We are in favor of the government and legislators putting in place new rules that clarify what constitutes and independent contractor that is reasonable and prudent. Then giving businesses clearer guidelines as to what and when best to engage contractors. Doesn’t that seem more reasonable?
From www.bradenton.com
New Bill Characterizes Misclassification as “Payroll Fraud”, says Pepper Hamilton
Highlights:
The penalties for misclassification, up to $5,000 per employee, could be staggering for companies that pay a significant amount of workers on a 1099 basis instead of using W-2s.
This law would be the first federal law where businesses must give newly hired workers a federally prescribed notice.
Read the full article here...