From the Chicago Tribune, Craig Lyons reports on Indiana’s efforts to collect lost unemployment taxes when workers are misclassified as independent contractors. Craig writes:
A legislative study committee will look at worker misclassification and how to deal with potential lost revenue to the state. A study done by the Building Trades and Construction Council estimates the loss to the state from misclassification at $400 million, but a state-authored report posited the figure is closer to $14 million to $20 million for the state and $5 million to $7 million in local income tax revenue.
Rep. Lisa Beck, D-Lakes of the Four Seasons, said she’s looked at the issue and spoke with workers and that the state needs to investigate misclassification and stop it.
“Worker misclassification cheats everyone, except for the people who participate in it, and profit from it,” Beck said, in a statement. “It deprives the workers of fairly earned benefits, it cheats honest businesses, and local and state budgets.”
“There are at least four state agencies in state government – the Indiana Department of Revenue, the Indiana Department of Labor, the Worker’s Compensation Board of Indiana, and the Department of Workforce Development – that have the ability to investigate and report on this subject matter,” Beck said. “What this study would do is direct these agencies to tell us how pervasive worker misclassification is in Indiana, and what we can do to combat it.”
Read the full story at Indiana seeks study to collect unpaid employment taxes – Post-Tribune