The charts below provide information about the tax audit program. States are expected to audit 2% of the contributing employers counted at the end of the third quarter of the preceding year. For the calendar year ending 12/31/2003, the national percentage of audits completed, as shown on Table 8, was 1.7%. The trend line on Chart 6 (below) shows that the number of audits completed per quarter is flat for the 16 quarters covered on the chart. The annual national percentage of audits completed supports the flat trend line. For CY 2000 - 2003 the annual percentages audited were: 2000 - 1.7%, 2001 - 1.6%, 2002 - 1.6% and 2003 - 1.7%.
Chart 7 provides a comparision of the employees discovered who had been misclassified as independent contractors (ICs) and the number of audits completed. Interestingly the ICs average about one per audit.
