an opportunity for you to explore a business related legal topic in greater detail with the goal of being able to explain the topic effectively to a lay person.
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Answer
Employees Misclassification ProblemsIn any functioning company, the misclassification of independent contractors and employees occurs all the time. In other cases, the employer may not understand what classification to apply and the importance of keeping to correct categories for each individual. When in violation, fines and other consequences are possible along with independent contractors or freelancers (Hyslop & Townsend, 2017). Many employers tend to erroneously classify employees as independent contractors as a way of avoiding paying too much tax. However, misclassification cases are a source of major risks. The IRS, the states, the Department of Labor (DOL), and other agencies do not favor independent contractors' status. Hence, treating a worker who is an employee as an independ...
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