State Expands Underground Economy Unit

Posted

The state has expanded its team to audit employers who fail to report wages paid to workers to avoid paying unemployment taxes.

The state Employment Security Department received federal funding last week to hire two new auditors to detect employers who fail to report wages or who incorrectly classify employees as independent contractors or don't classify them at all.



The new hires will bring to eight the number of auditors on the state's Underground Economy Unit. The two new auditors are expected to detect up to $7 million in unreported wages each year.

The state agency received $415,935 in federal funding from the U.S. Department of Labor to expand the auditing team.