Estimate IRS and DOL penalties for misclassifying employees as independent contractors. IRS Section 3509 back taxes: 1.5-3% of wages plus 20-40% of FICA. State penalties vary. Covers the ABC test (California AB5) and economic reality test.
⚖ For informational purposes only. Not legal advice. Consult a licensed attorney for your specific situation.
Enter the values for the scenario you are assessing. Estimate IRS and DOL penalties for misclassifying employees as independent contractors. IRS Section 3509 back taxes: 1.5-3% of wages plus 20-40% of FICA. State penalties vary. Covers the ABC test (California AB5) and economic reality test. Use the ic misclassification penalty result to inform your calculation.