A lot of businesses pay workers as 1099s because it feels easier.
No payroll.
No employer taxes.
Less administration.
But worker classification isn’t a choice the employer gets to make.
The law defines who is an employee — and in most cases, that worker should be a W‑2 employee on payroll.
This is one of the biggest areas of Department of Labor audits.
And it usually doesn’t start with an audit.
It starts with one worker — often a disgruntled one — who files a complaint.
From there, they don’t just look at that one person.
They look at every independent contractor you’ve paid.
And when workers are misclassified, the cost isn’t small.
It can mean back taxes, penalties, and tens of thousands of dollars owed.
Payroll isn’t just about paying people.
It’s about paying them the right way.
Use our instant price calculator to see what it costs to work with Baron Payroll — and make sure you’re paying your employees the right way, with no surprises down the road.
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