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April 23, 2012

Employment Task Force Recovers $10.9M

The state's Joint Enforcement Task Force on the Underground Economy and Employee Misclassification recovered $10.9 million in unpaid taxes and other funds from companies that had failed to comply with legal requirements on payment, insurance, taxes and other matters for 2011, according to its annual report.

The task force, formed through a 2008 executive order by Gov. Deval Patrick, allows state offices to collaborate in investigating rules violations. The recovered money includes $3.7 million in overdue taxes, resulting mainly from the misclassification of workers as independent contractors; $3 million in restitution, penalties and fines levied by the attorney general's office; $2.4 million in unemployment insurance taxes and $2.2 million recovered by the Division of Industrial Accidents, which brought 7,598 workers under workers' compensation insurance coverage.

The total amount recovered by the task force was up 68 percent from the $6.5 million recovered in 2010. In 2009, the first year of the task force, it recovered $1.4 million.

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