Understand your current situation

The best place to start is by looking critically at your program. We suggest you consider each of the contractors on your team. Have you classified each worker before onboarding them into your company? Would the tax authorities agree with your assessment as to whether they are an independent contractor or an employee? Pay particular attention to the contractors who you think of as independent contractors and are paying on that basis.

If there are some “question marks” hanging over the results of your research, talk with a qualified advisor, either someone you have on your team or someone externally, to determine if the red flags you’re seeing are real. Consider consulting with a third-party that can provide their own opinion on whether the contractor could be deemed “misclassified” by the tax authorities.