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" ... But Powell said that figure was distorted in part by a historic decline in labor force participation, which is the share of those working or actively seeking jobs, and misclassifications reported by the Bureau of Labor Statistics. ... "
" ... It can be easy to fall into verbal agreements when working with family. If they’re working and on payroll, they need to be performing the assigned tasks and have the same legal documentation as anyone else. This is just as important, if not more important, for businesses founded together as a family. Not only does this protect the company from any issues with misclassifications, but it also ensures that everyone is on the same page regarding responsibilities, payment and general expectations. ... "
" ... On November 18, 2013, New York became the 15th state to partner with the United States Department of Labor to combat workplace misclassifications of employees as independent contractors. Over the next few years, employers statewide can, consequently, expect heightened scrutiny, from both federal and state regulators, regarding the use of appropriate classifications. ... "
" ... The IRS recently announced a new voluntary disclosure for companies with misclassified workers. Workers are frequently misclassified for a variety of reasons, either intentionally to save costs, or unintentionally because of a lack of knowledge. Some independent contractor misclassifications occur because certain employers are protected from potentially large employment tax assessments by Section 530 of the Revenue Act of 1978. Misclassification reduces tax revenue in two ways. First, those classified as self-employed are less tax compliant than W-2 employees and second the employers fail to pay unemployment and Social Security and Medicare due on employee salaries. The IRS has estimated that misclassification costs the treasury over $1 billion per year. Those companies misclassifying employees also improperly avoid paying benefits including vacation pay, sick pay, workers compensation, health insurance and retirement benefits. ... "
" ... This gets even more complex when you consider the still occurring employment status misclassifications and people considered to have dropped out of the labor force (which can happen even if people look for jobs in listings but don’t see anything they can apply for). Here’s a tweet with a graph from the executive branch’s Council of Economic Advisors: ... "