Why You Need to Pay Attention to Worker Classification

Why You Need to Pay Attention
to Worker Classification

Worker classification has made headlines recently on both coasts, as a California court ruled that Uber drivers must be treated as employees, while the Massachusetts Supreme Judicial Court took the opposite view when it ruled that Boston taxi drivers can continue to be treated as independent contractors. At stake in both cases was millions of dollars in back overtime pay, taxes and benefits.

If you think this does not affect your business, think again. Businesses of all sizes, from the largest corporations to tiny family-run shops are subject to worker classification laws. And, in an effort to protect workers from abuse and (perhaps) raise additional payroll tax revenues, both federal and state governments are ratcheting up scrutiny and enforcement.

The June 19, 2015 edition of Kiplinger's Tax Letter focuses on worker classification and the potential penalties involved.

For more on this topic, read the article written by Gray, Gray & Gray Retired Partner Michael D. Koppel.

If you have any questions about classification of your own employees or the independent contractors you engage, please contact Gray, Gray & Gray's Tax Department. Voluntarily correcting any unintentional misclassification may still cost you, but can often lead to significantly reduced penalties and taxes.

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