With the rise of the gig economy, hiring 1099 contractors can be beneficial and useful way to tackle small projects to help grow your business.
The problem is; most companies are unwittingly exposing their businesses to potential misclassification lawsuits. Which may include (but not limited to):
- back taxes
- lost wages/benefits
- class action lawsuits
These are just a few examples – causing thousands or even millions of dollars of damages.
The solution for this dangerous situation: utilize an Agent of Record service.
Companies that provide Agent of Record Services take on all risk, liability, cover taxes, and manage all compliance – safeguarding your company from any legal recourse.
At okHire we offer Agent of Record services, helping many companies manage their workforce, establishing which employees should be hired as W2 employees, and others that meet the criteria as 1099 contractors.
An estimated 3.4 million employees are classified as 1099 Independent Contractors, when they should be reported as W2 employees (via justworks.com). Don’t let one of these 3.4 million misclassified employees cause the backlash and downfall of your company.
If your company engages 1099 contractors, let’s set up a time to discuss any compliance concerns.