Because of the risks involved with contractor misclassification, service providers such as Procom have embedded classification as a standard part of our services, an integral component of our contractor payrolling service. We call the contractor classification process VERIFICATION, and our process has been refined over the past few decades to keep it current with the changing realities of contract and employment law. We believe it is important to protect our clients from the risks of misclassification – and it also protects the interests of the skilled workers we represent.
Here’s how we can help.
Insulation that protects your interests: When engaging a worker on behalf of one of our client organizations, we first look at the specifics of the proposed engagement with the worker, and determine whether they are best suited as an employee or as an independent contractor.
If the classification process indicates that the worker is best considered an “independent contractor,” Procom will become the “Agency of Record” for that worker, handling payments and invoicing. The worker takes responsibility for their own taxes and other obligations.
If the classification process indicates that the worker is best considered an employee, that person then becomes a Procom employee on contract, with Procom as the “Employer of Record.” Procom takes responsibility for the required government remittances and other compliance obligations.
We apply rigorous classification tests: Our reputation with tax authorities, as well as with our clients, depends on our being able to determine how their contract workers – either independent contractors or employees – should be classified. Our VERIFICATION process includes a rigorous and well-planned system for onboarding and evaluating each and every pre-identified worker.
This entire process is ISO certified to make sure that each step is verified along the way, which in an audit situation helps the tax authorities see that correct procedure was followed.
We strive to stay up to date with changes: Because contractor classification is so key to the success of our company, we make every effort to stay up to date. This includes being well informed on the legislative climate, consulting with the best legal and HR advisors, and ensuring our process is in step with the changes, so you don’t have to.