Uber pays $100 million in back taxes to New Jersey over driver employment situation

Uber Technologies (NYSE:UBER) Inc said on Monday it had repaid New Jersey $100 million in unemployment taxes for classifying drivers as contractors but disagreed with the state's view that drivers were "employees".

Uber also said it had paid only a fraction of the $1 billion it initially demanded in the state's audit. The ride-hailing company paid $12.1 million, while its subsidiary Raiser paid about $88 million. "Drivers in New Jersey and across the country are independent contractors who work when and where they want... We look forward to working with policymakers to provide benefits while maintaining the flexibility drivers want," an Uber spokesperson told Reuters. The New Jersey Department of Labor and Workforce Development fined Uber and Raiser in 2019 for unpaid unemployment taxes from 2014 to 2018 due to misclassification of drivers, which the company appealed. According to the New York Times, which first reported the news, the state's labor department has now said that its initial audit was an estimate made without Uber's cooperation. A subsequent audit, based on payroll data provided by Uber, assessed that Uber and its unit owed a total of $100 million in taxes, penalties and interest, according to the report. The ministry did not respond to Reuters' request for comment on the old and new audit estimates. New Jersey has said it views the settlement as an indication that these workers in the state are "considered employees," according to the NYT. Uber, however, said the payment was not part of a "settlement." "Our efforts to combat the misclassification of workers in New Jersey continue to move forward," the article quoted Robert Asaro-Angelo of the Department of Labor as saying. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!