Work classification is easy, right? Think again.
Misclassifying employees is actually more prevalent than you think: 10-30% of employers misclassify at least one employee as an independent contractor, meaning millions of employees miss out on benefits, and employers have to pay hefty fines to mitigate the mistake.
Of course, misclassification doesn’t make the IRS happy either; it loses roughly $8 billion annually in employment taxes due to this oversight.
Because employee classification is important for all involved, we’ve developed the guide below to help you adhere to labor laws, avoid penalties, and provide the right legal protections and benefits for your people.