Employee Misclassification: The Real Cost of Not Knowing the Law

The importance of properly classifying workers as employees or independent contractors is critical. Seemingly insignificant work rules and requirements can change a worker’s classification and failure to follow the legal guidelines for classifying workers can lead to extremely severe IRS penalties and potential litigation with workers. State and federal laws and lawmakers stay alert and on the look out for potential violators and if when located they are pursued vigorously.