Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

Contractor Companies Misclassifying Employees for Tax and Defense Base Act Insurance Purposes

Some Contract Companies avoid paying Medicare and Social Security Taxes on their employees by classifying them as independent contractors or consultants.  The IRS considers this to be Fraud.

These same companies claim these same independent contractors/consultants to be employee’s for the purposes of acquiring the mandated Defense Base Act Worker’s Compensation Insurance.  Even going so far as to have workers sign and back date employment contracts after they have been injured so they will be covered.

See more on Misclassification of Employee’s as Contractors at Overseas Contractors Tax Information where you will also find a link to the IRS Form SS-8 that you will need to fill out if you have been misclassified.

Following is a recent SS-8 Determination which confirms the Misclassification and opens up the company to an investigation of Tax and Insurance Fraud and US Labor Law Violations.

February 24, 2011 Posted by | Blackwater, Civilian Contractors, Contractor Oversight, Defense Base Act, Follow the Money, Government Contractor, Private Military Contractors, Private Security Contractor, Taxes | , , , , , , | Leave a comment