Employers are still misclassifying millions of workers as independent contractors, instead of employees, according to a recent government report.

The report from the Treasury Inspector General for Tax Administration looked at the issue in the context of the Internal Revenue Service’s Determination of Worker Status Program (also known as the SS-8 Program), which lets employers and workers seek determinations of whether workers are employees or independent contractors. A TIGTA audit found that, out of 5,324 determination rulings from 2009, a fifth (19 percent) of employers appeared not to comply with the determinations, and two thirds (65 percent) did not issue the correct forms to their workers either because the workers no longer worked for them or the compensation was not reported to the IRS. Employers in compliance with the ruling accounted for 17 percent of those studied.

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