We’ve been talking about it for a while now. Worker Misclassification. The way that companies engage their workers and how they classify them according to labor laws, is a topic that is emerging from the shadows and into the spotlight.
CWS Strategies published an article on the subject: Global Effort: Countries waging war on IC misclassification.
In the U.S. the IRS announced in 2007 that it had entered into agreements with nearly 30 state revenue commissioners and workforce agencies to share information and enforcement techniques about employers suspected of misclassifying employees and again in 2010, the IRS announced that it was commencing a three-year Employment Tax National Research Project to conduct line-by-line audits of 6,000 businesses focusing on, among other things, employee misclassification.
This has been accelerated by the emergence and development of the “gig economy” and “on-demand” workforce, with a multitude of cloud-based platforms now enabling companies and workers to connect for task-based work.
Misclassification has been prevalent predominantly in the U.S, however we are now seeing a rise from other global regions. This trend will continue and grow in 2016 with legislation under review and more governments cracking down on potential lost revenue.
Global Workforce “misclassification” and the emergence of the “Gig & Freelance” workers are prompting governments worldwide to review payments to non- traditionally engaged workers within their boarders.
CXC Global is entering its 24th year ensuring compliant contractor engagements worldwide. Trusted Advisor to Corporations, MSP/VMS/RPO, Staffing Companies and domestic North America Payroll and Compliance Organizations as a global partner of choice.
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