An article on cnnmoney.com should be of concern to every construction business owner. Many contractors tell me they only use subs to do their work on jobs. But when it comes right down to it, many are claiming employees as subs. If I can figure that out by listening to them on the phone, what do you suppose a state or federal auditor is going to decide when they audit their books?
The government is targeting 6000 companies over the next 3 years to examine for employee misclassifications. One way to raise tax revenue is to figure out who’s cheating and get them to pay up (plus fines). Want to guess what industry will be a target?
“We like to see the good guys win.” Part of being a good guy is following the rules (whether you like them or not, and many of them aren’t very likeable). If you’re operating in a gray area, it’s better to clean up your act before someone official tells you to!