What To Do If You Were Misclassified As An Independent Contractor?

For most employees, not getting the right wage is an injustice. You work hard for 8 hours and even work overtime if necessary only to end up not being paid the wage they deserved. This is a longstanding problem that has plagued the American workforce. The website of William Kherkher reveals that misclassifying a regular employee as an independent contractor leaves them out on many important benefits.

For many employers, such practice saves them a lot of money so that even if the employee should be treated as such under the law, companies are willing to break the law just to save some money. The US Department of Labor revealed that around 10 to 30% of employers misclassify their employees. IN four states that have conducted studies, it was found out that around 1.8 million workers were found to have been misclassified.

As an employee, what can you do to recover the wages you have lost? First, try to talk to your employer. Clarify with them your real classification with them. Explain to them that you think they have wrongly classified you as an independent contractor. After all, you deserve an explanation from them why they consider you as a contractor than an employee.

If talking to your employer does not solve the problem, get the attention of the IRS. You can ask the agency to determine your employment status for the purpose of taxation. You can file IRS Form SS-8 and there is no fee for doing so. Upon receipt of your complaint, the IRS will call your employer in order to determine what your status should be. The decision of the IRS shall be binding on the agency and not on your employer. However, non-compliance by an employer can have legal ramifications.

If you were fired or laid off by your employer, you can file for an employment insurance claim. Tell them that you were misclassified as a contractor. If after the investigation and the state unemployment agency deemed that you should be treated as an employee, you will be entitled to receive your backpay as well as insurance premiums.

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