The US Labor Department and the IRS are streamlining their coordinating process to stop businesses that misclassify workers and deny them wages, benefits, and legal protections.
Both federal agencies renewed a joint memorandum of understanding Thursday that allows them to pool resources to promote employer compliance with pay and employment tax obligations.
Since 2011, the Labor Department’s Wage and Hour Division and IRS have shared information uncovered during investigations, reducing administrative redundancies and hastening worker legal protections, the division said in a press release.
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