Where the Gig Economy Meets Proper Engagement
Over the past year, the ratio of independent contractors to full-time employees has meaningfully risen among small- and medium-sized businesses in major metropolitan areas across the country. No reliable economic labor data suggests that this trend will slow any time soon. The problem? Most staffing industry firms have precluded independent contractor programs from their offerings, also to avoid the associated risks.
Independent Contractors (ICs) are a major legal hot topic. Currently, 3.4 million workers are misclassified as ICs each year, on average. That means federal and state government enforcement is at an all-time high, with potential tax liabilities capable of soaring to over 41.50% in penalties. It’s important to have an IC Vetting Program in place that has documented procedures to protect all parties; reduces potential penalties. That’s where Evaulent comes in. We help our clients fully validate potential contractors under the requirements of all applicable laws and regulations, mitigating the risk of major fines.
IC Program Advantages
Improved Contractor Experience
Our processes integrate seamlessly, creating an enriched experience for contractors. Leveraging technology to facilitate vetting and on-boarding processes.
Compliance starts with the intake evaluation and continues through engagement, with ongoing monitoring until offboarding.
The legal landscape is intense, and policy makers continually change legislative regulations on local, state, and federal levels.
Scalability and Flexibility
Enterprise-level solutions to every kind of organization. Whether you need a single gig worker or esoteric specialists, ICs know how to get the job done.
Indemnification Best Practices
We share best practices and common pitfalls around indemnification and insurance. We also provide comprehensive defense files and indemnify you for related audit failures.
Indemnification best practice related to worker classification. Reduce potential penalty assessments to clients who serve as the recipient of the services provided.
Comprehensive Vetting Process
Our team has a proprietary compliance program to facilitate hiring and streamline processes.
Each contractor goes through a self-employability consultation to validate various IC requirements are met.
If the contractor does not meet those requirements, we will engage that person as a W-2 Employee (Payroller).
Compliance is Critical
Major Legal Hot Topic
Independent Contractors (ICs) are a major legal hot topic currently: 3.4 million workers are misclassified as ICs each year, on average.
Federal and state government enforcement is at an all-time high: potential tax liabilities can soar to 41.50% + penalties; enterprise clients are targets as they have deep pockets and are the end recipient of IC services.
It’s important to have an IC Vetting Program in place that has documented procedures to protect all parties; reduces potential penalties.
Tested Verification Process
In order to properly pay a contractor as a 1099 or IC, you need to fully validate that contractor under the requirements of all applicable laws and regulations or be subject to major fines.
Value to Independent Contractors
Streamlined web-based invoicing and payment process
Increased networking opportunity with other clients in need of similar services
Workforce technology that tracks the approvals process, with all data time and date stamped for visibility into each step of the process
Introductions to recommended insurance carriers for ICs without the proper coverage
Sharing industry knowledge and best practices with ICs during meetings, as well as feedback in a process similar to supplier quality reviews
Are You Getting Most the Out of Your Contingent Workforce?
If your company spends between $5M to $50M annually on temporary labor, ask yourself:
Does your company have expertise in the staffing industry and managing temp workers?
Is your company a destination of choice for suppliers and contingent workers?
Is there a system of record for contingent labor transactions in place (sourcing workers, time and expense, performance reporting)?
Do you recognize cost savings for self-identified workers?
Is there a dedicated individual responsible for managing your contingent workforce program?
Do you have consistent contracts in place with all your suppliers?
Do we have access to data-driven metrics on supplier performance?
If you answered “No” to any of these questions, let’s talk and explore how Evaluent can help you better navigate the talent ecosystem.
Innovate. Accelerate. Elevate.