A “First of its Kind” PFML Plan launches in New Hampshire
Beginning in December 2022, employers can start enrolling in New Hampshire's new voluntary Paid Family and Medical Leave plan for employers and employees of all types of businesses.
An independent contractor is person, business, or corporation that provides services or goods to another entity under specific terms or contractors. Generally, independent contractors hold control on when and where the agreed upon work will be finished.
Hiring an independent contractor versus a traditional employee means avoiding paying overtime, workers’ compensation insurance, holiday pay, and more. But misclassifying an employee simply to avoid paying these taxes is a huge no-no. Unfortunately, that doesn’t stop some employers from doing just that: An estimated 3.4 million employees are currently considered independent contractors when they really should be employees.
How is this issue caught? Most often a misclassified worker is the one who alerts either his or her state Department of Labor or the U.S. Department of Labor (DOL). From there, the case can be handled at the individual level or an investigation is open, looking into all employees and independent contractors for a three-year period at the offending company.
Consequences are determined if the misclassification was intentional or unintentional. If truly a mistake, the employer faces the following penalties:
Now, if the misclassification was INTENTIONAL, the employer faces the above penalties plus the following:
Clearly, misclassification of employees is not a joke. Be sure you’re correctly classifying any and all employees to avoid fines and potential jail time!