According to the US Department of Labor, “The misclassification of employees as independent contractors presents one of the most serious problems facing affected workers, employers and the entire economy.”
Here’s the issue: A contractor or subcontractor hires unskilled workers - maybe as carpenters or painters, roofers or insulators - and then calls them “Independent Contractors” to avoid paying benefits and fair wages. They strike a deal and the unskilled worker gets a “1099” form at the end of the year and loses out on having the employer pay social security taxes, disability taxes, and other Federal and State employment taxes. Of course, everyone loses because governments and beneficiaries (you and me) stand to lose payments to funds intended to benefit all workers.
The MSBCTC is working to stop misclassification through legislation in Augusta and by encouraging reporting and enforcement.