Independent contractor misclassification audits in California continue to rise. The IRS as well as the California Employment Development Department or EDD are heavily targeting San Diego employers with 1099 employees or independent contractors. Each agency believes the vast majority of independent contractors are actually employees who are misclassified. The financial impact of this issue is substantial for all employers, and can threaten the actual survival of most businesses. The issues arose out of a US Supreme Court decision 18 months ago. The Supreme Court ruled that it wasn’t simply a …
Employee Misclassification a Growing Challenge for San Diego Employers
The misclassification of employees as independent contractors has become a significant area of focus for the US Department of Labor, the IRS and California’s state agencies. The Department of Labor recently hired 700 new auditors whose sole focus will be employee misclassification audits. Your business model may be built upon the use of independent contractors, or you may simply use a few to manage various aspects of your business. If you employee independent contractors in San Diego you need to understand a major change in the law has occurred. It …