Wednesday, January 7, 2015

Tax Administrator discusses underground economy

Rhode Island Tax Administrator David M. Sullivan discussed the misclassification of workers during an interview today on Channel 10 (WJAR-TV). 

Sullivan told Frank Coletta, the veteran Channel 10 anchor, that when an employer misclassifies a worker, both the worker and the employer are put at risk -- and the State of Rhode Island loses needed tax revenue.

Sullivan was interviewed by Coletta at Channel 10’s headquarters in Cranston. The segment was broadcast during the station's news program at noon, is repeating on cable TV, and is also available online at the station's website.

Tax Administrator David M. Sullivan

Sullivan serves on a six-agency task force that was established last year to coordinate joint efforts to combat the underground economy and employee misclassification. ("Employee misclassification" typically means a worker who should be classified as an employee but who is instead improperly classified as an independent contractor.) 

The task force was formed as a result of legislation approved by the General Assembly and enacted in June 2014. As part of the task force’s efforts, the Rhode Island Division of Taxation has set up an anonymous telephone tip line to receive allegations of worker misclassification.