The US Department of Labor recently conducted a study which
found that on an average, 13% of employers’ have
misclassified at least more than one of their
employees as an independent contractor. As a result, employers throughout Ohio did
not pay the correct amount of Unemployment Insurance (UI) Contributions to the
Ohio Department of Jobs and Family Services (ODJFS).
Unemployment benefits are paid and determined based upon the
proper reporting of wages by the employer.
If an employer improperly classifies an individual as an independent
contractor and fails to report wages earned and pay the correct share of
contributions to ODJFS; an employer can be subjected to penalties and accrued
interest if it is later determined by ODJFS that the individual is truly an
employee and not an independent contractor.
The most important factor an employer should consider in
establishing this relationship is whether or not the employee has the right of
direction and control of the work being performed. An employer-employee relationship is formed
when the employee does not have direction and control of the services he or she performs for the employer.
There are 20 questions used by ODJFS to help identify
whether or not an employer-employee relationship exists. For listing of these questions visit ODJFS
web page: http://jfs.ohio.gov/ouc/uctax/comnfaq.stm
If you need additional information please contact CareWorksComp
Unemployment Supervisor, Melissa Keys at (866) 780-NFIB (6342) ext. 51504, or
email her at [email protected]
