States step up audits of misclassified workers
NJBiz magazine recently published an article on states stepping up labor audits and penalizing employers who misclassify workers as independent contractors instead of actual employees. In many cases, states fine employers for all the back taxes owed as well as interest and penalties.
As a solution to 1099 compliance, many companies are utilizing Uniforce’sQuick Start Staffing as a third party payroll service. Since Uniforce becomes the (W-2) “Employer of Record” for the workers that were incorrectly classified as independent contractors, companies are IRS compliant and can now retain the workers with no payroll tax, insurance, or benefits costs.
A recent NJBiz article discusses this issue in length.