Up to 95 percent of employees who reported being incorrectly classified as contractors were reclassified upon review.
We get it. 1099s are easy. So, we understand why it’s so common for employers to classify their employees as independent contractors.
The problem with issuing 1099s to workers who should be classified as employees is that it’s incredibly easy for those classification errors to be discovered by the IRS and DOL. And, when that happens, you’ll be in for an unwelcome surprise in the form of a six-figure payout to correct that mistake.
The short version: When you misclassify an employee as an IC you are still on the hook for all of the compliance issues you are trying to avoid. Download our free Independent Contractor Cheat Sheet to make sure you’re getting employee classification right from the start.
- Store Name: CEDR HR Solutions
- Store Email Address: [email protected]
2919 E. Broadway Blvd.
Tucson, AZ 85716
United States (US)
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