Payroll Fraud
Payroll Fraud is when workers are paid off the books and deprived of the protection of employment, leading to the exploitation and abuse of workers, erosion of our local economy, and punishes law-abiding corporate citizens.
Worker Misclassification
Occurs when employers misclassify employees as “independent contractors” to avoid paying payroll taxes, overtime, unemployment tax, and workers’ compensation premiums.
Paying Cash ‘Under The Table’
When workers are paid cash or “under the table,” employers avoid paying taxes and workers compensation premiums. Workers are taken advantage of and are often not paid overtime compensation when they complete over 40 hours in a work week. There are instances where workers do not get paid at all. This practice constitutes Payroll Fraud and Immigrant Worker Abuse.
How to identify an employee from an independent contractor
If you can answer yes to these questions, it means you are an employee.
Find more information on the IRS website.
Do you make decisions that affect your opportunity for profit or loss?
Do you make investments in the equipment or facilities for business purposes?
Does the business set your pay rate, work hours and duties?
Do you have a permanent working relationship with an employer?
Do you use your own independent business initiative, judgement, and skills?
Do you perform work that’s integral to a employer’s business?