The issue of how some home building companies pay their workers has caught the attention of the IRS and the U.S. Department of Labor. The issue is at hand is who counts as an employee versus who counts as independent contractors. Companies don't have to pay payroll taxes on independent contractors so when and if companies fail to classify employees correctly it costs the federal government billions in lost tax dollars. To remedy the problem the Labor Department and IRS have increased audits on companies and business owners say now is a bad time to do that. So what's at stake for big home builders and smaller companies as the government increases audits? We hear from Fronteras Reporter, Devin Brown about how classifying employees might hurt businesses.

 

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