Illegal Immigration Update
1099 misclassifications hurt law-abiding, responsible businesses as well as our
state’s workforce and immigrant populations; cheat local, state and federal
governments out of billions in revenue annually; cause insurance costs to skyrocket;
impose higher taxes on homeowners; and contribute to an illegal, black market
economy.
In fact, a Cornell University study showed that 1099 fraud cost our state
$4.3 billion in annual taxable income over a four-year period.
What is 1099 Misclassification?
Employers call their workers “independent contractors” to avoid taxes, insurance
costs, and payroll deductions. They pay in lump sums and claim they will report
workers’ annual earnings on IRS Form 1099.
Why do Contractors Misclassify?
The 1099 scheme lets companies avoid normal payrolls, so they don’t pay Social
Security, Medicare, workers’ compensation, unemployment insurance, or overtime –
all of which are required by law.
Is This Crime or Confusion?
1099 abuse involves many crimes: tax evasion, mail and insurance fraud, grand theft,
wage-and-hour violations, money laundering, and racketeering/RICO activity.
Saying “No”
to Fare Hikes and Payroll Taxation
The Ravitch Commission Report, recommended not only raising MTA fares on our
local commuters, but also recommended to tax the payrolls of all businesses
within MTA service areas, including Dutchess County. Greg Ball said “NO!”
and joined a caucus of Mid-Hudson Region lawmakers in opposition to the
report’s recommendations. Greg will hold steadfast against these unnecessary
new taxes that will not only hurt employees, but hurt our local economy at
large.