By Kristin Casler, featuring Todd Lebowitz at BakerHostetler
Your company is facing a seemingly innocuous unemployment compensation claim. You might not even bat an eye. But wait! If that worker was misclassified as a contractor, any penalty levied also applies to all similarly situated employees for as far back as the statute of limitations allows. That can add up quickly. Then—get out your calculators—the state unemployment agency folks are sure to notify all of their friends in workers’ compensation, income tax and other state agencies, and then they will share the information with their friends at the U.S. Department of Labor and the IRS.
“All of a sudden you’ve got all of these state and federal agencies on your back, and the molehill has turned into a very large mountain.”