Company Fined €51K for Misclassifying Employees, Evading €1.5M in Wages
A company in the Cham district has been convicted for misclassifying employees as self-employed and failing to report their wages to the social security office. The owner faces a significant fine and must pay back withheld contributions.
From 2016 to 2021, the company employed three installers, treating them as self-employed contractors despite them working like regular employees. This allowed the company to avoid reporting their wages, amounting to nearly 1.5 million euros, to the social security office. By doing so, the company saved around 165,000 euros in social security contributions.
The Regensburg Local Court found the company owner guilty of withholding and misappropriation of wages. He was sentenced to a total fine of 51,150 euros. Additionally, the owner is required to pay back the withheld social security contributions and cover the court costs.
The company owner's actions have resulted in a substantial penalty. The court's decision serves as a reminder that misclassifying employees and evading social security contributions is a serious offense with significant consequences.
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