The misclassification of employees as independent contractors presents one of the most serious problems facing affected workers and employers. Businesses may classify workers as independent contractors to avoid expenses such as social benefits, overtime, holiday & sick pay and unemployment compensation.
In any employee-independent contractor determination, all information that provides evidence of the degree of control and the degree of independence will be considered.
In the main, there are three areas that the IRS will look at;
Behavioural control – instructions given to the worker / training provided.
Financial control – including expenses, investments, services rendered, how the worker is paid.
Type of relationship – including benefits such as insurances and pension plan, together with the permanency of the position.
If a company is found to have misclassified a worker as an independent contractor, the consequences will depend on whether the IRS determine that the misclassification was intentional or unintentional.
If unintentional, the employer faces financial penalties relating to failure to withhold taxes and interest, as well as administrative fees. If the IRS suspects fraud or intentional misconduct, it can impose additional fines and penalties.
At IF Workforce Solutions, our HR professionals help you to determine the best way forward with these complicated issues, avoiding unnecessary fines. We will review your requirements and offer the best solution for workforce placement, be it as freelance contractors, or as employees. By instating IF Workforce Solutions as your Employer of Record, you eliminate the risk of worker misclassification.
“Even though we worked together for a short term. It was a wonderful experience with If-contracting team. I was new to Germany, You and your team have given me good directions to working as a freelancer. You and your team are very approachable for me at any time. Surely I will consider If-contracting in the future.
Convey my personal thanks to the If-contracting team.”
I would like to express my gratitude to IF and the team for providing hassle free payroll and German compliance; during my time with IF there was never an issue with answering any questions that I posed and always polite and efficient staff on hand.
Once again your assistance and everyone else’s whom I have spoke with at IF Contracting have been super pleasant! Wish I had known you as a company before!
Many thanks again for your fast response! I would hire you if I had a company!”
I have let Joseph at [AGENCY] know that I won’t be progressing with the contract in Belgium.
I would however like to keep in touch with you as the rest of Europe is definitely in my sights for the future. You have been most helpful and I thank you for that. I will pass on your details to my contracting colleagues.
Over the past 3 years I’ve had the pleasure of working with Tawnee from IF-Contracting. She has a wealth of knowledge within the international payroll industry – from her service levels, to her ability to handle urgent requests and her pleasant and fun nature towards international payroll makes her one of, if not the best consultant within the payroll industry.
Amar, Pangea Resourcing
I have worked with IF Contracting over the years and would happily recommend them to any recruitment agency. If you are looking for a proactive consultancy that are very responsive, offering a high level of customer service to your contractors then look no further. They offer the guarantee which is unique in the payroll industry and very reputable. Their processes are smooth, hassle free and done in a timely manner.
As a company, they are very knowledgeable and are always at hand if needed. If you are looking to expand your international contract footprint then IF Contracting are in a positon to assist.
Mark, Claremont Consulting
I have had the pleasure of working with Tawnee over the last 6+ years across the organisations that I have been involved with. Tawnee has always provided an exceptional work ethic, stellar knowledge of her market and industry including a great professional service along with customer focus
Jidz, Rescisco Global
To learn more about IF Workforce Solutions and how our team of international tax experts can help you get in touch. Our service is fast, confidential and could open your eyes to a fresh approach to contractor taxationContact us