A new report from Icon Professional Services finds that companies are largely unaware of the financial risks they face by classifying employees as independent contractors. Sixty-eight percent of respondents claimed that they were confident they could pass an audit but in reality only 55 percent did. Further, 77 percent of respondents believed that 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 $100,000 annually, a company’s financial risk could exceed many times that 100K figure. Eighty-four percent of respondents said they would maintain or increase their investment in independent contractors in 2015.
Read the release from Workers’ Comp Institute (via Business Wire) here.
Read the report from Icon here.