Merge Legal Massachusetts Independent Contractors Forms For Free

In Massachusetts, the rules about who can be classified as an independent contractor are part of the Wage Act. Any violation of the Wage Act, including an improper classification, will result in triple damages and payment of the plaintiff's attorneys' fees.

Suppose an employer misclassifies an individual as an independent contractor. In that case, they will not have the required Form I-9 on file and could be subject to penalties that include civil fines, criminal penalties, debarment from government contracts, and court orders.

The Massachusetts self employment tax is paid quarterly using Form 1040-ES, Estimated Tax for Individuals. Then file your annual tax return using Schedule SE (Form 1040 or 1040-SR ), Self-Employment Tax to report your Social Security and Medicare taxes.

Under Massachusetts General Law Chapter 149, Section 27C, employers who willfully misclassify workers are guilty of a criminal offense. A first-time offense carries up to $25,000 in fines and a year in jail. Subsequent offenses carry up to $50,000 in fines and two years in prison.

Federal law violation fines This department hires auditors to identify and penalize independent contractor misclassification. At a minimum, consequences include paying back wages, but you could also face criminal penalties, including: Payment penalties of up $1,000 per misclassified employee. Jail time of up to a year.

California law allows civil penalties to be charged to employers that intentionally misclassify workers. The fine can range between $5,000 and $15,000 per violation, and if there is a pattern of willful misclassification, the courts can fine employers an additional $10,000 to $25,000.