Collabrus Risk Mitigation Solutions

Contingent Workforce Risk Mitigation Solutions

Proven solutions to effectively manage the risk associated with contingent workers

With increasing numbers of companies outsourcing non-core work to consultants and independent contractors, the tax and legal line between traditional employees and contingent worker positions has blurred. As a result, the risk of 1099 compliance audits and co-employment scrutiny by the IRS and other regulatory agencies has dramatically increased.

A 1099 audit can be costly for your organization. In reviewing the relationship between independent contractors and their clients, agencies often reclassify 1099 workers as W-2 employees, resulting in retroactive payroll tax liabilities, fines and claims for benefits that can grow to encompass your entire contractor workforce.

Collabrus helps to mitigate these risks by creating compliance programs that address your organization’s priorities and culture. We work collaboratively with key stakeholders to build a program that enables your managers to secure the specialized talent they need, while ensuring that each contractor and supplier relationship meets federal and state guidelines. Collabrus risk mitigation services include:

Contingent Workforce Risk Assessment

A Collabrus Workforce Assessment provides a framework for your compliance program decisions. We give you complete visibility into the cost, risk and resources associated with your suppliers and the directly sourced contingent workers within your organization. Based on our findings, we’ll offer recommendations for immediate and long-term risk mitigation as well as a customized implementation plan.

Contractor Onboarding & Life Cycle Processes:

The foundation for an effective risk management program is a well defined requisition and intake process that captures all “non-employee” workers on your premises so they can be classified, monitored and managed in accordance with state and federal guidelines. Collabrus will help you address the gaps in your current process and ensure that you answer critical questions to mitigate contingent workforce risk.

Independent Contractor Evaluation and Classification:

Our Web-based system, coupled with expert review, will evaluate each independent contractor relationship for tax and co-employment risks. Our easy-to-complete online surveys for consultants and their project sponsors explore and document how consultants will interact with your organization and how their business is structured. Both surveys and expert review are based on the IRS right-to-control test and include additional proprietary questions that reflect current case law and recent Federal and State regulatory decisions.

Our proprietary model assesses the project and contractor to assist you in determining if the IRS or state agencies (such as the EDD) would regard the consultant as an independent contractor (qualifying for 1099 tax status), to be paid via invoice, or as a W-2 employee who can be compensated through the Collabrus Payroll Program.

Compliance File Creation and Maintenance

Collabrus creates and maintains standardized, up-to-date compliance files that demonstrate your organization’s awareness and adherence to federal and state regulations. In case of an audit, these records are invaluable.

Contingent Workforce Tracking and Reporting

Collabrus works with your management team to define key risk indicators (KRIs). We then create a reporting system that enables you to track, monitor, identify and address situations that create tax and co-employment risk for your company.

Education and Training

To help achieve organizational adoption, Collabrus conducts seminars and training sessions to educate your hiring managers and consultants on compliance issues and on your organization’s policies and processes that assure compliance.

Supplier Review and Evaluation

Collabrus can help streamline your staffing supplier list, assuring that each staffing company you work with is credible and has documentation to guarantee a safe business relationship with the workers provided to your organization. We employ a proprietary vendor qualification process that examines and rates supplier practices related to tax and co-employment risk.

Collabrus offers a full range of solutions