A Sustainable Workforce Starts With You

Worker Misclassification

Payroll fraud (also called worker misclassification and workplace fraud) is the illegal practice of designating an employee as a "1099 worker" or an independent contractor. Unscrupulous employers do this to avoid paying payroll taxes, unemployment tax, or workers’ compensation insurance and are therefore able to submit lower bids for projects, undercutting responsible contractors. Several states have already passed laws to penalize those who cheat workers and taxing agencies in this way, and two bills are currently being considered which would provide federal legislation to end this practice and that of wage theft. They are The Fair Playing Field Act, introduced by Senator Kerry and a number of co-sponsors and The Employee Misclassification Prevention Act.

There is a bill, LB 563, moving through the Nebraska Legislature that creates penalties for “Employers” who misclassify workers as “Independent Contractors” in order to avoid...
April 14, 2010
The deadline for issuing 1099s to contractors and consultants who worked with you last year was the 31st of January. There was a last minute flurry of people trying to get w-9s...
February 07, 2010