It's estimated that the federal government loses $3-4 billion in revenue a year because employers label their full-time workers as independent contractors. Then there’s the ones that pay their workers under the table.Since so many continue to cut corners this way, there’s no real way to know how much money is lost annually. When running a business, it’s important to recognize the dangers of employee misclassification, and know what qualifies under this category and why. An an employer, one should understand the consequences that come with wrongly classifying an employee as an independent contractor.