Confusion on Classification Codes In NH - Workers Comp Premium Audit - Reserve Reviews For Employers

Workers' Compensation
Premium Refunds Possible

Nov 17, 2009

Confusion on Classification Codes In NH

New Hampshire authorities have created a new Web site that allows the public to anonymously report companies believed to have misclassified workers as independent contractors. The site is part of an effort by the state's Task Force for the Misclassification of NH Workers, a group comprised of the Departments of Insurance, Labor, Revenue and Employment Security in the state. The state created the task force last year to crack down on employers who misclassify workers.

We have received a few inquiries from our New Hampshire clients on misclassification due to the above press release that made it in all of the newspapers in the area. Misclassification has to do with independent contractors only.

This press release does not concern employers that may have accidentally classified one of their workers in the wrong category - for example - clerical/administrative that should have been classified as manufacturing. That is the function of the insurance carrier's premium audit process to correct these situations.

In the next article, I will re-post the IRS rules for classification of independent contractors or employees. However there is a difference between tax classification and workers compensation classification codes