“Residential construction industry built on ‘payroll fraud’ model”

FEBRUARY 2016 – “Many workers are not an employee of anyone and are paid either cash or by some type of direct check. In multi-family construction, it’s possibly over 50 percent of the market that ends up being paid that way,” he said. “Typically, about 40-50 percent of the cost of a construction project is labor. If you add that all up, it’s hard to say exactly what the impact of payroll fraud would be on the construction industry, on the economy of the state of Minnesota, but it’s no doubt in the tens of millions of dollars, likely over $100 million.”

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