Independent Contractor Compliance Solutions from Superior

Home > Workforce Management > Independent Contractor Compliance Solutions from Superior

Superior offers Independent Contractor Compliance Solutions

The IRS has realized that significant tax revenue is lost due to worker misclassification. When an individual is paid on a 1099 basis, the independent contractor (IC) can deduct many business expenses and, as a result, pay significantly less in taxes each year. The IRS estimates that it loses up to and between $4 and $20 billion annually in unpaid taxes as a result of worker misclassification.

The IRS seeks to recoup lost tax revenue thorough audits to determine if misclassification has occurred. Significant tax, wage, benefits liabilities and fines/penalties have been assessed.

It is a common practice of companies to use ICs; however, formal relationship management processes by which an IC is properly evaluated prior to commencement of assignment are often lacking. Also, once an IC is hired, the manner in which they are treated in the workplace can also catalyze a co-employment claim. Through Superior’s Independent Contractor Compliance Screening and Evaluation Services, all of our customers’ current and future ICs are screened to levels stipulated by state and federal governing legislation, and appropriate recommendations are shared with our customers.

To learn more, dial 800.568.8310 and ask to speak with a representative about our Independent Contractor Compliance Program, or send an email to icss@superior-sdc.com.