Worker Classification- It's Not a Worker or Employer Decision!
October 24, 2018
Worker classification remains a problem for businesses of all types, including professional practices. Because the Internal Revenue Services (IRS), the Department of Labor (DOL) and the states believe that they are currently incurring a significant loss of revenue and where workers are losing benefits, the IRS, the DOL, and the states are all attacking worker classification and all have different tests to determine worker status. In 2010, the IRS conducted approximately 6,000 comprehensive employment audits, roughly 2,000 for the years 2010, 2011 and 2012 for small businesses and professional practices under the National Research Project (NRP). One purpose of the NRP audits was to determine how much revenue is being lost due to worker misclassification. To date, the results of those audits have not been determined…