With more than 10 million self-employed resources in the workforce, it’s imperative that companies handle freelancers and consultants the right way—especially when it comes to the IRS.
Independent contractor compliance is serious business, as worker misclassification can cost the IRS anywhere from $4 to $20 billion annually in uncollected revenue. To identify these misclassifications, the IRS used a 20-factor test to determine independent contractor status until just recently, when it moved to a three-factor test.
And those rules are changing all the time. With financial figures in the billions, you can bet that the IRS has a close watch on independent contractors. For that reason, it’s become common practice for companies to enlist someone to assist them with the process.
Superior’s independent contractor compliance department ensures that all our customers’ current and future contractors are held to standards set by the state and federal governments. Additional benefits of having us on your side include:
- Classification assistance. Superior can help evaluate your independent contractors to ensure that they’re being placed in the right category, per IRS standards.
- Peace of mind. Reducing co-employment risks can be stressful and challenging, but it doesn’t have to be when you have an experienced partner by your side.
- Project management. Once the bona fide independent contractor is onboarded, Work Nexus processes can streamline project deliverables, approvals and payments.