The cost of misclassification to social insurance funds, low and high estimates, percent difference relative to W-2 workers
| Construction workers | Customer service reps/call center workers | Heavy and Tractor-Trailer Truck Drivers | Home health and personal care aides | Janitors and cleaners | Landscaping workers | Light truck delivery drivers | Housekeeping cleaners | Manicurists and pedicurists | Retail sales workers | Security guards | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| State | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate | Low estimate | High estimate |
| Alabama | -14.1% | -26.0% | -12.0% | -20.5% | -7.6% | -23.1% | -10.9% | -19.9% | -12.0% | -20.5% | -12.0% | -20.5% | -7.6% | -23.1% | -12.0% | -20.5% | -5.0% | -15.2% | -10.7% | -17.9% | -12.0% | -20.5% |
| Alaska | -18.6% | -30.5% | -16.7% | -25.2% | -12.5% | -28.1% | -15.8% | -24.9% | -16.7% | -25.2% | -16.7% | -25.2% | -12.5% | -28.1% | -16.7% | -25.2% | -10.1% | -20.4% | -15.4% | -22.7% | -16.7% | -25.2% |
| Arizona | -16.9% | -28.2% | -14.8% | -22.8% | -10.9% | -25.5% | -13.9% | -22.4% | -14.8% | -22.8% | -14.8% | -22.8% | -10.9% | -25.5% | -14.8% | -22.8% | -8.3% | -17.8% | -13.6% | -20.4% | -14.8% | -22.8% |
| Arkansas | -13.3% | -24.9% | -11.1% | -19.3% | -7.0% | -22.1% | -10.1% | -18.9% | -11.1% | -19.3% | -11.1% | -19.3% | -7.0% | -22.1% | -11.1% | -19.3% | -4.2% | -14.1% | -9.6% | -16.7% | -11.1% | -19.3% |
| California | -18.6% | -30.5% | -16.7% | -25.2% | -12.5% | -28.1% | -15.8% | -24.9% | -16.7% | -25.2% | -16.7% | -25.2% | -12.5% | -28.1% | -16.7% | -25.2% | -10.1% | -20.4% | -15.4% | -22.7% | -16.7% | -25.2% |
| Colorado | -16.9% | -28.2% | -14.8% | -22.8% | -10.9% | -25.5% | -14.8% | -22.8% | -14.8% | -22.8% | -10.9% | -25.5% | -14.8% | -22.8% | -8.3% | -17.8% | -13.6% | -20.4% | -14.8% | -22.8% | ||
| Connecticut | -14.2% | -28.1% | -12.4% | -22.2% | -7.2% | -25.3% | -11.3% | -21.8% | -12.4% | -22.2% | -12.4% | -22.2% | -7.2% | -25.3% | -12.4% | -22.2% | -4.8% | -16.7% | -10.5% | -19.0% | -12.4% | -22.2% |
| Delaware | -14.7% | -26.1% | -12.7% | -20.7% | -8.9% | -23.7% | -11.9% | -20.5% | -12.7% | -20.7% | -12.7% | -20.7% | -8.9% | -23.7% | -12.7% | -20.7% | -6.3% | -16.0% | -11.3% | -18.3% | -12.7% | -20.7% |
| District of Columbia | -14.7% | -26.1% | -12.7% | -20.7% | -8.9% | -23.7% | -11.9% | -20.5% | -12.7% | -20.7% | -12.7% | -20.7% | -12.7% | -20.7% | -6.3% | -16.0% | -11.3% | -18.3% | -12.7% | -20.7% | ||
| Florida | -14.7% | -26.1% | -12.7% | -20.7% | -8.9% | -23.7% | -11.9% | -20.5% | -12.7% | -20.7% | -12.7% | -20.7% | -8.9% | -23.7% | -12.7% | -20.7% | -6.3% | -16.0% | -11.3% | -18.3% | -12.7% | -20.7% |
| Georgia | -14.7% | -26.1% | -12.7% | -20.7% | -8.9% | -23.7% | -11.9% | -20.5% | -12.7% | -20.7% | -12.7% | -20.7% | -8.9% | -23.7% | -12.7% | -20.7% | -6.3% | -16.0% | -11.3% | -18.3% | -12.7% | -20.7% |
| Hawaii | -18.6% | -30.5% | -16.7% | -25.2% | -12.5% | -28.1% | -15.8% | -24.9% | -16.7% | -25.2% | -16.7% | -25.2% | -16.7% | -25.2% | -10.1% | -20.4% | -15.4% | -22.7% | -16.7% | -25.2% | ||
| Idaho | -16.9% | -28.2% | -14.8% | -22.8% | -10.9% | -25.5% | -13.9% | -22.4% | -14.8% | -22.8% | -14.8% | -22.8% | -10.9% | -25.5% | -14.8% | -22.8% | -8.3% | -17.8% | -13.6% | -20.4% | -14.8% | -22.8% |
| Illinois | -14.1% | -28.0% | -12.5% | -22.4% | -7.1% | -25.3% | -11.4% | -22.0% | -12.5% | -22.4% | -12.5% | -22.4% | -7.1% | -25.3% | -12.5% | -22.4% | -5.2% | -17.1% | -11.1% | -19.5% | -12.5% | -22.4% |
| Indiana | -14.1% | -28.0% | -12.5% | -22.4% | -7.1% | -25.3% | -11.4% | -22.0% | -12.5% | -22.4% | -12.5% | -22.4% | -7.1% | -25.3% | -12.5% | -22.4% | -5.2% | -17.1% | -11.1% | -19.5% | -12.5% | -22.4% |
| Iowa | -14.7% | -28.4% | -13.1% | -22.9% | -7.7% | -25.7% | -12.0% | -22.4% | -13.1% | -22.9% | -13.1% | -22.9% | -7.7% | -25.7% | -13.1% | -22.9% | -5.9% | -17.6% | -11.8% | -20.1% | -13.1% | -22.9% |
| Kansas | -14.7% | -28.4% | -13.1% | -22.9% | -7.7% | -25.7% | -12.0% | -22.4% | -13.1% | -22.9% | -13.1% | -22.9% | -7.7% | -25.7% | -13.1% | -22.9% | -5.9% | -17.6% | -11.8% | -20.1% | -13.1% | -22.9% |
| Kentucky | -14.1% | -26.0% | -12.0% | -20.5% | -7.6% | -23.1% | -10.9% | -19.9% | -12.0% | -20.5% | -12.0% | -20.5% | -7.6% | -23.1% | -12.0% | -20.5% | -5.0% | -15.2% | -10.7% | -17.9% | -12.0% | -20.5% |
| Louisiana | -13.3% | -24.9% | -11.1% | -19.3% | -7.0% | -22.1% | -10.1% | -18.9% | -11.1% | -19.3% | -11.1% | -19.3% | -7.0% | -22.1% | -11.1% | -19.3% | -4.2% | -14.1% | -9.6% | -16.7% | -11.1% | -19.3% |
| Maine | -14.2% | -28.1% | -12.4% | -22.2% | -7.2% | -25.3% | -11.3% | -21.8% | -12.4% | -22.2% | -12.4% | -22.2% | -7.2% | -25.3% | -12.4% | -22.2% | -4.8% | -16.7% | -10.5% | -19.0% | -12.4% | -22.2% |
| Maryland | -14.7% | -26.1% | -12.7% | -20.7% | -8.9% | -23.7% | -11.9% | -20.5% | -12.7% | -20.7% | -12.7% | -20.7% | -8.9% | -23.7% | -12.7% | -20.7% | -6.3% | -16.0% | -11.3% | -18.3% | -12.7% | -20.7% |
| Massachusetts | -14.2% | -28.1% | -12.4% | -22.2% | -7.2% | -25.3% | -11.3% | -21.8% | -12.4% | -22.2% | -12.4% | -22.2% | -7.2% | -25.3% | -12.4% | -22.2% | -4.8% | -16.7% | -10.5% | -19.0% | -12.4% | -22.2% |
| Michigan | -14.1% | -28.0% | -12.5% | -22.4% | -7.1% | -25.3% | -11.4% | -22.0% | -12.5% | -22.4% | -12.5% | -22.4% | -7.1% | -25.3% | -12.5% | -22.4% | -5.2% | -17.1% | -11.1% | -19.5% | -12.5% | -22.4% |
| Minnesota | -14.7% | -28.4% | -13.1% | -22.9% | -7.7% | -25.7% | -12.0% | -22.4% | -13.1% | -22.9% | -13.1% | -22.9% | -7.7% | -25.7% | -13.1% | -22.9% | -5.9% | -17.6% | -11.8% | -20.1% | -13.1% | -22.9% |
| Mississippi | -14.1% | -26.0% | -12.0% | -20.5% | -7.6% | -23.1% | -10.9% | -19.9% | -12.0% | -20.5% | -12.0% | -20.5% | -7.6% | -23.1% | -12.0% | -20.5% | -5.0% | -15.2% | -10.7% | -17.9% | -12.0% | -20.5% |
| Missouri | -14.7% | -28.4% | -13.1% | -22.9% | -7.7% | -25.7% | -12.0% | -22.4% | -13.1% | -22.9% | -13.1% | -22.9% | -7.7% | -25.7% | -13.1% | -22.9% | -5.9% | -17.6% | -11.8% | -20.1% | -13.1% | -22.9% |
| Montana | -16.9% | -28.2% | -14.8% | -22.8% | -10.9% | -25.5% | -13.9% | -22.4% | -14.8% | -22.8% | -14.8% | -22.8% | -10.9% | -25.5% | -14.8% | -22.8% | -8.3% | -17.8% | -13.6% | -20.4% | -14.8% | -22.8% |
| Nebraska | -14.7% | -28.4% | -13.1% | -22.9% | -7.7% | -25.7% | -12.0% | -22.4% | -13.1% | -22.9% | -13.1% | -22.9% | -7.7% | -25.7% | -13.1% | -22.9% | -11.8% | -20.1% | -13.1% | -22.9% | ||
| Nevada | -16.9% | -28.2% | -14.8% | -22.8% | -10.9% | -25.5% | -13.9% | -22.4% | -14.8% | -22.8% | -14.8% | -22.8% | -10.9% | -25.5% | -14.8% | -22.8% | -8.3% | -17.8% | -13.6% | -20.4% | -14.8% | -22.8% |
| New Hampshire | -14.2% | -28.1% | -12.4% | -22.2% | -7.2% | -25.3% | -11.3% | -21.8% | -12.4% | -22.2% | -12.4% | -22.2% | -7.2% | -25.3% | -12.4% | -22.2% | -4.8% | -16.7% | -10.5% | -19.0% | -12.4% | -22.2% |
| New Jersey | -15.0% | -28.5% | -13.7% | -23.3% | -8.7% | -26.3% | -13.0% | -23.2% | -13.7% | -23.3% | -13.7% | -23.3% | -8.7% | -26.3% | -13.7% | -23.3% | -7.2% | -18.8% | -12.6% | -20.8% | -13.7% | -23.3% |
| New Mexico | -16.9% | -28.2% | -14.8% | -22.8% | -10.9% | -25.5% | -13.9% | -22.4% | -14.8% | -22.8% | -14.8% | -22.8% | -10.9% | -25.5% | -14.8% | -22.8% | -8.3% | -17.8% | -13.6% | -20.4% | -14.8% | -22.8% |
| New York | -15.0% | -28.5% | -13.7% | -23.3% | -8.7% | -26.3% | -13.0% | -23.2% | -13.7% | -23.3% | -13.7% | -23.3% | -8.7% | -26.3% | -13.7% | -23.3% | -7.2% | -18.8% | -12.6% | -20.8% | -13.7% | -23.3% |
| North Carolina | -14.7% | -26.1% | -12.7% | -20.7% | -8.9% | -23.7% | -11.9% | -20.5% | -12.7% | -20.7% | -12.7% | -20.7% | -8.9% | -23.7% | -12.7% | -20.7% | -6.3% | -16.0% | -11.3% | -18.3% | -12.7% | -20.7% |
| North Dakota | -14.7% | -28.4% | -13.1% | -22.9% | -7.7% | -25.7% | -12.0% | -22.4% | -13.1% | -22.9% | -13.1% | -22.9% | -7.7% | -25.7% | -13.1% | -22.9% | -11.8% | -20.1% | -13.1% | -22.9% | ||
| Ohio | -14.1% | -28.0% | -12.5% | -22.4% | -7.1% | -25.3% | -11.4% | -22.0% | -12.5% | -22.4% | -12.5% | -22.4% | -7.1% | -25.3% | -12.5% | -22.4% | -5.2% | -17.1% | -11.1% | -19.5% | -12.5% | -22.4% |
| Oklahoma | -13.3% | -24.9% | -11.1% | -19.3% | -7.0% | -22.1% | -10.1% | -18.9% | -11.1% | -19.3% | -11.1% | -19.3% | -7.0% | -22.1% | -11.1% | -19.3% | -4.2% | -14.1% | -9.6% | -16.7% | -11.1% | -19.3% |
| Oregon | -18.6% | -30.5% | -16.7% | -25.2% | -12.5% | -28.1% | -15.8% | -24.9% | -16.7% | -25.2% | -16.7% | -25.2% | -12.5% | -28.1% | -16.7% | -25.2% | -10.1% | -20.4% | -15.4% | -22.7% | -16.7% | -25.2% |
| Pennsylvania | -15.0% | -28.5% | -13.7% | -23.3% | -8.7% | -26.3% | -13.0% | -23.2% | -13.7% | -23.3% | -13.7% | -23.3% | -8.7% | -26.3% | -13.7% | -23.3% | -7.2% | -18.8% | -12.6% | -20.8% | -13.7% | -23.3% |
| Rhode Island | -14.2% | -28.1% | -12.4% | -22.2% | -7.2% | -25.3% | -11.3% | -21.8% | -12.4% | -22.2% | -12.4% | -22.2% | -7.2% | -25.3% | -12.4% | -22.2% | -4.8% | -16.7% | -10.5% | -19.0% | -12.4% | -22.2% |
| South Carolina | -14.7% | -26.1% | -12.7% | -20.7% | -8.9% | -23.7% | -11.9% | -20.5% | -12.7% | -20.7% | -12.7% | -20.7% | -8.9% | -23.7% | -12.7% | -20.7% | -6.3% | -16.0% | -11.3% | -18.3% | -12.7% | -20.7% |
| South Dakota | -14.7% | -28.4% | -13.1% | -22.9% | -7.7% | -25.7% | -12.0% | -22.4% | -13.1% | -22.9% | -13.1% | -22.9% | -7.7% | -25.7% | -13.1% | -22.9% | -5.9% | -17.6% | -11.8% | -20.1% | -13.1% | -22.9% |
| Tennessee | -14.1% | -26.0% | -12.0% | -20.5% | -7.6% | -23.1% | -10.9% | -19.9% | -12.0% | -20.5% | -12.0% | -20.5% | -7.6% | -23.1% | -12.0% | -20.5% | -5.0% | -15.2% | -10.7% | -17.9% | -12.0% | -20.5% |
| Texas | -13.3% | -24.9% | -11.1% | -19.3% | -7.0% | -22.1% | -10.1% | -18.9% | -11.1% | -19.3% | -11.1% | -19.3% | -7.0% | -22.1% | -11.1% | -19.3% | -4.2% | -14.1% | -9.6% | -16.7% | -11.1% | -19.3% |
| Utah | -16.9% | -28.2% | -14.8% | -22.8% | -10.9% | -25.5% | -13.9% | -22.4% | -14.8% | -22.8% | -14.8% | -22.8% | -10.9% | -25.5% | -14.8% | -22.8% | -8.3% | -17.8% | -13.6% | -20.4% | -14.8% | -22.8% |
| Vermont | -14.2% | -28.1% | -12.4% | -22.2% | -7.2% | -25.3% | -11.3% | -21.8% | -12.4% | -22.2% | -12.4% | -22.2% | -7.2% | -25.3% | -12.4% | -22.2% | -4.8% | -16.7% | -10.5% | -19.0% | -12.4% | -22.2% |
| Virginia | -14.7% | -26.1% | -12.7% | -20.7% | -8.9% | -23.7% | -11.9% | -20.5% | -12.7% | -20.7% | -12.7% | -20.7% | -8.9% | -23.7% | -12.7% | -20.7% | -6.3% | -16.0% | -11.3% | -18.3% | -12.7% | -20.7% |
| Washington | -18.6% | -30.5% | -16.7% | -25.2% | -12.5% | -28.1% | -15.8% | -24.9% | -16.7% | -25.2% | -16.7% | -25.2% | -12.5% | -28.1% | -16.7% | -25.2% | -10.1% | -20.4% | -15.4% | -22.7% | -16.7% | -25.2% |
| West Virginia | -14.7% | -26.1% | -12.7% | -20.7% | -8.9% | -23.7% | -11.9% | -20.5% | -12.7% | -20.7% | -12.7% | -20.7% | -8.9% | -23.7% | -12.7% | -20.7% | -6.3% | -16.0% | -11.3% | -18.3% | -12.7% | -20.7% |
| Wisconsin | -14.1% | -28.0% | -12.5% | -22.4% | -7.1% | -25.3% | -11.4% | -22.0% | -12.5% | -22.4% | -12.5% | -22.4% | -7.1% | -25.3% | -12.5% | -22.4% | -5.2% | -17.1% | -11.1% | -19.5% | -12.5% | -22.4% |
| Wyoming | -16.9% | -28.2% | -14.8% | -22.8% | -10.9% | -25.5% | -13.9% | -22.4% | -14.8% | -22.8% | -14.8% | -22.8% | -10.9% | -25.5% | -14.8% | -22.8% | -13.6% | -20.4% | -14.8% | -22.8% | ||
Notes: Estimates show the percentage difference in contributions to social insurance funds—Social Security, Medicare, federal and state Unemployment Insurance, and Workers' Compensation—between a W-2 employee and an independent contractor under two models. The low estimate reflects the percentage difference when the independent contractor receives full compensation for health and retirement benefits. The high estimate reflects the percentage difference when the independent contractor receives no compensation for health and retirement benefits.
Source: EPI analysis of data from the Bureau of Labor Statistics' Employer Cost for Employee Compensation (ECEC) 2024Q2 Occupational Employment and Wage Statistics (OEWS) Research Estimates by State and Industry May 2023 data.