The IRS estimates that 80% of U.S. contract workers are misclassified as contractors when they should actually be employees. Why should we care what the IRS things? Because there are serious financial penalties if you’ve chosen wrong. This includes back payment of employment taxes, FICA, and state and federal unemployment taxes. And criminal penalties include up to $1,000 per misclassified worker and one year in prison. We’re not looking to scare you, but you need to be aware. We’ll provide the basic rules around employee and independent contractor classification to keep you and your business safe.