Just a few days remain until Tax Day, and local carpenters are taking the opportunity to highlight construction tax fraud, part of a national effort by carpenters to raise awareness.
Misclassification and under-the-table payments are major costs to workers, but also taxpayers, Chris Austin, business manager for the North Atlantic States Regional Council of Carpenters.
“I don't think the public is aware as much as they should be. However, this is the time of year we try to pick it out," he said. "Because if you're one of those people that have to drop off a check at the post office on April 15, you certainly pay more attention to it when you're writing your check and you know that somebody else isn't paying their fair share.”
Improper employment practices in the construction industry cost taxpayers more than $5 billion a year, according to nonprofit The Century Foundation, which focuses on public policy research. This includes paying less for payroll taxes, Social Security and unemployment insurance.
Off-the-books payments and misclassifications especially have major implications in the event of workplace injuries, Austin said.
“We're all just one bad day or an accident away from falling and having a lifetime of injuries to where you have to find a different career path," he said. "However, we look to make sure that those insurances are paid, so that person has that bridge to find that work and other industries.”
Many carpenters and other construction workers are listed by employers as independent contractors, Austin added. That means they don’t get workers compensation or disability.
But he adds that there is potential for positive change thanks to efforts at the local and state levels of government, pointing to a recent meeting Buffalo Mayor Sean Ryan had with building trades representatives to make sure the local bidding process is set up properly.
