Liquid Helps You With Independent Contractor Compliance
Liquid has the features you need to stay compliant.
Independent Contractor Compliance. You know it’s essential to classify your independent contractors correctly. Reports have shown that 10-20% of independent contractors are misclassified. And misclassification leaves your business open to liabilities and penalties due to violations of tax and employment laws.
Hiring independent contractors / freelancers increases flexibility and reduces labor expenses (i.e., training and tax costs). Many behavioral, financial, and relationship control factors determine whether you are actually hiring a W2 employee or a 1099 independent contractor.
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Here are some Liquid features that help you with independent contractor compliance.
This separation is similar to how companies have adopted the use of third-party companies to source and contract with 1099 workers. And it relates to the ABC test: if you have independent contractors on the same systems that are used to manage employees, you are more at risk of violating the ABC test.
If you are working with properly classified 1099 independent contractors and/or vendors, Liquid helps you stay compliant. Sign-up for Liquid beta today!
Category: Liquid News Compliance
Updated: January 16, 2020
Quick note: This is not to be taken as tax advice or legal advice or payroll advice. Since tax rules and laws change over time and can vary by location and industry, consult a CPA / tax advisor and/or attorney for specific guidance.