1 / 7

NAGLO 2010

NAGLO 2010. Misclassified workers . History of (section 530) Safe harbor supposed to be temporary. Common industry practice Audit by the IRS Employer relied on advice from a lawyer or accountant . Proposed Legislation HR3408 (117 cosponsor) S2882(14 cosponsors).

tekli
Download Presentation

NAGLO 2010

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. NAGLO 2010 Misclassified workers

  2. History of (section 530) Safe harborsupposed to be temporary • Common industry practice • Audit by the IRS • Employer relied on advice from a lawyer or accountant

  3. Proposed Legislation HR3408 (117 cosponsor) S2882(14 cosponsors) • Corporate to corporate reporting • Self reporting to the IRS • Increase in fine schedule

  4. Fair Labor Standards Act BillsHR5107 and S3254 • Requires employers to keep records of use of independent contractors • Requires employers to notify the status of an employee or independent contractor at time of employment and at any change in status • Safeguards employee from reporting on misclassification violations • Doubles liquidated penalties • Social security administration required to do audit program • DOL and IRS requires communication of violations

  5. State Studies OHIO • The attorney general use 2005 unemployment data and found • 459,000 misclassified workers in tax year 2005 • Cost to the state • Unemployment insurance $100 million • Workers compensation $510 million • State income tax $180 million • Local income tax $100 million • Total state and local $890 million • Federal loss $500-$600 million SSI and Medicare • Another $500 million in federal income taxes

  6. What industries • Construction both commercial and residential • Trucking and small package delivery • Hospitality (Hotel maids) • Janitorial • Bartending • Night Watchman • Blackwater contract soldiers

  7. The Administrations Initiatives • $25 million to treasury, DOL and OSHA • It brings in $7.3 Billion in Revenue • $12 Million for 90 FTE to investigate (4,700 investigations annually. • $11.25 million in grants to State UI agencies for enforcement • $1.6 million for solicitor of labor enforcement • $150,000 for stronger OSHA

More Related