With the recent increase in the number of federal and state task forces aimed at curbing tax fraud in the construction industry, construction companies would be wise to ensure their businesses are in compliance with the tax laws. One area in particular that has drawn increased scrutiny by federal and state tax authorities is the misclassification of construction workers as independent contractors instead of as employees of the business. Construction companies can reduce the risk of an audit and incurring costly penalties by accurately classifying its workers at the outset of the relationship.
Reprinted courtesy of Gregory Seador, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.