The Missouri Department of Labor and Industrial Relations found an average of 0.14 misclassified workers per employer audit conducted between 2005 and 2009 -- ranking it No. 50, according to the report.

Only Iowa had a lower rate during that time frame, finding an average of 0.10 misclassified workers per employer audit. California posted the highest rate at 4.82 misclassified workers per audit.

Reasons for Missouri's low performance, according to the report, include:
*The need for a better method to select employers to audit
*Not performing follow-up audits
*State law does not clearly define employee versus independent contractor
*State isn't fully utilizing Form 1099 data
*Not enforcing penalties against employers who intentionally misclassify workers

The State Auditor's office estimated Missouri would see taxable wages rise by $38 million annually if it increased the effectiveness of its audits to around the national average of 1.36 misclassified workers found per audit.

To download a copy of the report, click the button below.