Audit Representation
Collection Issues
Financial Planning

Worker Misclassification

IRS, US Department of Labor, RI Div of Taxation, RI Dept. of Employment and Training, RI Dept of Labor and Training have extablished a Joint Task Force to combat fraudulent employement activities:

Quote from the US Dept of Labor:

"Business models that attempt to change or obscure the employment relationship through the use of independent contractors may not be used to evade compliance with federal labor law.

Although legitimate independent contractors are an important part of our economy, the misclassification of employees presents a serious problem, as these employees often are denied access to critical benefits and protections — such as family and medical leave, overtime compensation, minimum wage pay, Unemployment Insurance, personal protective equipment and retirement benefits — to which they are entitled.

In addition, misclassification can create economic pressure for law-abiding business owners, who often find it difficult to compete with those who are skirting the law."

Quote from the RI Tax Adminstrator:

"By using the tip line, workers and others can let us know about employers who are misclassifying workers as independent contractors.

Rest assured that we will follow up on all tips. Businesses that don't play by the rules end up increasing the tax burden on those businesses that do play by the rules. By enforcing our laws, we can help to level the playing field — and that helps everyone, including employers and employees."

Quote from the RI Attorney General:

"While the vast majority of Rhode Island businesses are playing by the rules, those who aren't must be identified and stopped," said Attorney General Peter F. Kilmartin. "This small number of corrupt businesses is denying workers their basic protections by misclassifying employees in order to evade paying for unemployment benefits and workers' compensation insurance. The result is an uneven playing field that hurts honest and law-abiding employers."

Link to

RI DLT Misclassification of Employees and Independent Contractors

RI DLT Press Release on Six-Agency Task Force to combact Misclassification

IRS Independent Contractor or Employee link



1119 Reservoir Ave. Cranston, RI. 02910 ph. 401.942.6900 fax. 401.942.0167
©2015 Anthony Ricci CPA All Rights Reserved