Independent Contractor (1099)

Prevent Misclassification and Mitigate Liability

How sure are you that your independent contractors are classified correctly? Misclassification can result in severe fines and penalties.  Partnering with Checks and Balances ensures compliance with classification.

Our responsibility is to correctly determine a worker’s classification as a W2 employee or an independent contractor for federal and state employment tax purposes. Checks and Balances adheres to strict guidelines in our worker classification process and follows the common law rules as defined by the IRS.

Our independent contractor vetting process was created by our in-house compliance and tax specialists in conjunction with legal counsel. We continually update the process to reflect any new legislative changes.

The proprietary questionnaires we use qualify independent contractors based on various factors, including IRS and Department of Labor considerations, state and local laws, and industry best practices. We analyze the degree of control the contractor has over their work arrangement, and we strive to make a final determination within 24 hours of receipt of the completed questionnaires.

After the initial vetting process, we conduct internal audits every 12 months on every contractor and work arrangement to ensure continued compliance and re-verify eligibility.

Complimentary Services for Independent Contractors

Throughout the engagement, Checks and Balances mentors the independent contractors on a wide variety of business tasks and processes. These include administrative and contract review, setting up electronic invoicing and payment processing, quick and efficient payment and expense reimbursements, and human resources and accounting advisory services. These mentoring and training services make our clients’ lives easier by educating the independent contractors on how to do business with a larger company.