Uber pays New Jersey $100 million in back taxes on drivers’ employment status – NYT | The mighty 790 KFGO

(Reuters) – Uber Technologies Inc has paid New Jersey $100 million in back taxes for misclassifying drivers as contractors, The New York Times reported on Monday.

Uber, however, said it disagreed with New Jersey that the drivers were ’employees’ and was only paying a fraction of what the state originally asked. in its audit, which amounted to more than a billion dollars. The statement did not disclose the amount of the payment.

“Drivers in New Jersey and nationally are independent contractors who work when and where they want…We look forward to working with policymakers to deliver benefits while preserving the flexibility drivers want,” an Uber spokesperson told Reuters.

The New Jersey Department of Labor and Workforce Development had fined Uber and its subsidiary Raiser in 2019 for unpaid unemployment taxes for the years 2014-2018 due to misclassification of drivers, which the company disputed.

The state Labor Department has now said its initial audit was an estimate made without Uber’s cooperation, according to the NYT.

A subsequent audit, relying on worker payroll data provided by Uber, assessed that Uber and its unit owed a total of $100 million in back taxes, penalties and interest, it added. The report.

New Jersey said it viewed the settlement as an indication that those state workers were “presumed to be employees,” according to the report. Uber said the payment was not part of a “settlement.”

“Our efforts to address worker misclassification in New Jersey continue to move forward,” the report said, quoting Department of Labor commissioner Robert Asaro-Angelo as saying.

(Reporting by Lavanya Ahire, Shubhendu Deshmukh and Shubham Kalia in Bengaluru; Editing by Uttaresh.V)

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