From Rock Hill Herald Online, “The 2014 ICon Executive Insight Report: Worker Misclassification, Distinguishing Perception from Reality, reveals several key findings:
- Nearly seven-in-ten (68 percent) respondents said they have great confidence they would pass an audit, but in reality, only 55 percent actually reported passing their audit.
- Of the 45 percent that did not pass their audit, more than one-quarter (27 percent) of those were required to pay “outrageous” fines.
- 77 percent of respondents believe their total financial risk exposure to failing a worker misclassification audit is below $100,000. The reality is that for 100 independent contractors paid on average $100K annually, a company’s financial risk could exceed $4,500,000.
- There exists a clear uncertainty about the status of a company’s independent contractor workforce. Only 57 percent of respondents report they have “great confidence” in knowing the exact number of independent contractors they are currently using, increasing their overall risk exposure.
Read the full story at Companies Largely Unaware of Financial Risk of Independent Contractor Misclassification, Reveals ICon Survey Report
- Companies underestimate risk of contract employee classification (smartbrief.com)