We take care of Your Risk Compliance Assessment for 1099 Contractors
1099 Risk Compliance
When an employer improperly classifies an employee as an independent contractor this becomes worker misclassification, Managed Staffing assesses 1099 employees on an individual basis according to the IRS 3 factors test which includes the assessment of Behavioral, Financial, Relational, Common Law and Fair Labor Standards act.
Below are the basic differences in employees and Independent contractors:
Employee
- Are paid on a W-2
- Are provided with tools by their employer
- Work in an environment controlled by their employer
- Output is controlled by their employer
- Are provided with training, instruction and supervision by their employer
- Work on-site
- Have access to benefits, workers' compensation and unemployment insurance protection
- Perform core functions with thin the company
- Participate in company sponsored programs and events
- Work for a single employer for multiple years
Independent Contractors
- Are paid on a 1099
- Operate in business-to-business contractual relationships
- Work from negotiated Statements of Work on a per-project basis
- Provide own tools
- Are not supervised by the company
- Usually do not work solely on-site
- File their own quarterly taxes
- Invoice the company according to deliverables
- Have multiple clients
- Invest in their business
- Maintain business licenses and insurances