2010: The Year of the Employee and $7 Billion in Additional Payroll Taxes?

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2010 may well be the year of the employee. Both the IRS and the Department of Labor are adding investigators to find “misclassified” employees.

For many years, employers have relied on independent contractors as a means of controlling payroll and benefits costs, as well as reducing the costs of recruiting and training new workers. The use of independent contractors was rarely challenged.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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