COMPLIANCE

appropriate worker classification: big challenge for organizations

Fueled by sharpened scrutiny by tax authorities, including the IRS and an avalanche of regulatory developments, non-employment independent work arrangements have been villainized as tax loopholes, unfair attempts by corporations to circumvent employer’s obligations and save money. As a consequence, not knowing the unknown, companies and organizations often resort to (third party) employment-based solutions, incurring unnecessary expenses while ignoring the best interests of contract talent.

Worker classification is not a binary science, but offers a full spectrum of outcomes. A classification process is best handled by an impartial workforce services partner who does not benefit from the outcome. Reality is that simply not all positions qualify to be filled by contractors; neither is the BOTH Company of One concept a solution by default. However, the BOTH approach does fortify and reinforce compliance in the strongest possible way, in particular in those cases where positions qualify only conditionally.