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Did Ohio GOP Senate hopeful bilk treasury?
As the presidential candidates make tax policy personal, the same thing is happening in Ohio, where Sen. Sherrod Brown’s campaign is accusing his Republican challenger, Josh Mandel, of bilking the same state treasury he runs. As Mandel ran for state treasurer in 2010, he classified at least nine of his senior staffers as independent contractors instead of full-time employees, according to campaign finance disclosures reviewed by Salon, which allowed him to forgo paying some taxes to the state and the IRS.
Classifying workers as contractors instead of employees gives employers more flexibility and lower costs, as there’s no legal requirement for them to provide health benefits or withhold payroll (Social Security) and Medicare taxes. Contractors are supposed to have their own businesses and provide discrete skills, but that norm is often abused by employers who fill positions at lower costs that should be occupied by full-time employees. Employment law prohibits misclassification, and employers who engage in it with “no reasonable basis for doing so … may be held liable for employment taxes for that worker,” according to the IRS.
Classifying workers as contractors instead of employees gives employers more flexibility and lower costs, as there’s no legal requirement for them to provide health benefits or withhold payroll (Social Security) and Medicare taxes. Contractors are supposed to have their own businesses and provide discrete skills, but that norm is often abused by employers who fill positions at lower costs that should be occupied by full-time employees. Employment law prohibits misclassification, and employers who engage in it with “no reasonable basis for doing so … may be held liable for employment taxes for that worker,” according to the IRS.
I wonder if this story has legs? I really, really strongly dislike Josh Mandel. I don't know much about him, but I have a sort of visceral negative reaction to him. Plus I think Sherrod Brown is awesome, and I feel like this little twerp is in no way Brown's equal.
http://www.salon.com/2012/09/24/did_gop_senate_hopeful_bilk_treasury/
