This report offers a quantitative analysis on the extent and economic costs of payroll fraud in Rhode Island, with a particular focus on the misclassification of workers as independent contractors. This study reviews data provided by the Rhode Island Department of Labor and Training (DTL) on (a) aggregate results of DTL employee misclassification investigations, (b) the issuances of Stop Work Orders, and (c) the results of employer payroll audits conducted in accordance with the state’s unemployment insurance system. The authors then use these data to make projections about the number of workers misclassified statewide and the costs to workers and taxpayers.