Independent Contractor (1099) Compliance Services


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DCR Workforce’s comprehensive collection of independent contractor services ensures that you have greater control over the management of your contingent workforce.

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Independent Contractor (1099) Compliance Services

  1. 1. IndependentCompliance Services (1099) Contractor Key BenefitsCompeƟƟon for high-skilled talent is increasingly intensifying, and isfurther complicated by the growing percentage of the workforce being • Manage riskcomprised of conƟngent workers. Companies have to be able to accessthis populaƟon and minimize the risk that can occur from misclassificaƟons. • Ensure complianceThe IRS is increasing funding and resources to collect due tax revenues • Retain skilled talentfrom worker misclassificaƟon and states are collaboraƟng by passingstringent laws to penalize companies engaged in misclassificaƟon of • Track spending and cost savingscontractors. It’s becoming urgently important for companies to ensure thatthey are accurate and safe in their use and classificaƟon of conƟngent • Receive detailed reporƟng and analyƟcsworkers. Employers misclassifying workers may not only be responsiblefor unpaid overƟme wages, but also for back-taxes, interest, court costs, • Reduce processing Ɵme and expenseadministraƟve fees, aƩorney’s fees, and various penalƟes as well. • Gain beƩer insight into your conƟngent workEngaging independent contractors is a complex process. DCR’s consult- force spendants, backed by our Smart Track Vendor Management SoŌware, offeryou a method to unravel the intricacies and manage your independent • Heighten visibilitycontractors. With our Independent Contractor compliance soluƟon,we offer you a complete suite of services including compliance tesƟng, • Access desired talenttracking, classificaƟon guidance, and risk calculaƟon. • Increase worker saƟsfacƟonOur comprehensive collecƟon of independent contractor servicesensures that you have greater control over the management of yourconƟngent workforce. • Independent contractor (1099) compliance tesƟng • Assistance in converƟng non-compliant 1099s to payrolled contract workers • Independent contractor risk calculaƟon with an output scorecard • Ongoing evaluaƟon based on changes in the engagement protocol • Tracking of spend and savings • Detailed records on each independent contractor, including DCR’s original recommendaƟons regarding classificaƟon.ValidaƟon of compliance with 1099 classificaƟon status is based on IRS standards and state requirements. There is no single clear-cuttest that the government uses to classify workers as independent contractors or employees. In addiƟon, classificaƟon rules vary fromstate-to-state and are not necessarily consistent with federal tax rules. Various legal tests for determining worker status are used bydifferent government agencies. © 2012 DCR Workforce, Inc. All Rights Reserved. DCR Workforce and Smart Track are Registered Trademarks. CCO — 082912
  2. 2. Compliance TestingCompliance TesƟngDCR examines both the individual and the proposed work assignment to provide you with classificaƟon assistance. Our tesƟng includes areview of legal documents, insurance coverage and related business documents, with every step supported by the DCR 1099 ComplianceTesƟng System. Profile Customer Behavior Financial RelaƟonship Complete IC TermsRisk CalculaƟonIn evaluaƟng each potenƟal independent contractor, DCR completes an online survey that captures the criƟcal informaƟon needed tosaƟsfy each of the tests used by government agencies. We grade each contractor based on this scienƟfically administered quesƟonnaire.QuesƟons are intended to determine the degree of behavioral control or independence, the financial aspects of the arrangement, and thenature of the relaƟonship between the parƟes. Responses form the basis for the risk calculaƟon and recommendaƟon.Profile MaintenanceWe encourage independent contractors to proacƟvely register with us through Smart Track. The outcome of the quesƟonnaire above alsoprovides a profile of each individual. You would be given access to this qualified and risk-assessed repository of independent contractorsto be considered for your requirements.Tracking and AlertsThe Smart Track IndependentContractor Module also provides acomprehensive tracking system thatallows you to redeploy 1099s basedon their services and the compliancemethods. We alert you to conductthe assessment upon programincepƟon and at annual repeƟƟonsto confirm conƟnued regulatorycompliance.“Compliance Firewall”DCR briefs your hiring managers on the criteria for 1099 classificaƟon and the risks associated with misclassificaƟon. This is especiallyimportant when bringing back alumni employees as 1099s to perform the same work previously conducted as full-Ɵme, permanentemployees. This “Compliance Firewall” prevents any misclassificaƟons while maintaining an audit file, in case of any future challengesfrom the IRS. “Employers illegally passed off 3.4 million regular workers as contractors, while the Labor Department esƟmates that up to 30% of companies misclassify workers” ~NY Times, February, 2012 “The FY 2013 budget includes resources to conƟnue to detect and deter the misclassificaƟon of workers as independent contractors by including $14 million to combat misclassificaƟon” ~U.S. Department of Labor, FY 2013 Budget Summary © 2012 DCR Workforce, Inc. All Rights Reserved. DCR Workforce and Smart Track are Registered Trademarks. CCO — 082912
  3. 3. About DCR WorkforceSmart Track Vendor Management SoŌwareSmart Track, DCR’s innovaƟve SaaS-based suite of workforce supply chain management applicaƟons, redefines the role ofvendor management systems – expanding from conducƟng transacƟons to supporƟng criƟcal interacƟons and decisionmaking. Through Smart Track, we forge networks of business managers, suppliers and indirect workers, creaƟng aninsƟtuƟonal memory of best pracƟces, and a means of sharing them. • Unlimited Visibility into Workforce Lifecycles • ForecasƟng Tools and Wizards • “On demand” ReconfiguraƟon CapabiliƟes • Advanced Compliance Support • Automated AdministraƟve Processing • Device-Independent Access • Pre-built Connectors • Robust Management ReporƟng • Embedded Business AnalyƟcs • Highly Reliable, Scalable, Cloud CompuƟng Plaƞorm • “Always On” Technical SupportAbout UsDCR Workforce is, quite simply, dedicated to helping you maximize the contribuƟon of your extended workforce. For DCR,achieving highly efficient workforce procurement and management transacƟons is just the starƟng point. We also providethe knowledge and technology required to analyze, understand and act on all aspects of your conƟngent talent managementprogram.We serve global F1000 and mid-Ɵer clientele. RepresentaƟve clients include Lockheed MarƟn, Program Controls, SaviTechnologies, Meads InternaƟonal, and Raytheon Javelin Joint Venture. Our proprietary cloud-compuƟng plaƞorm (SmartTrack) assists in providing customizable VMS and MSP soluƟons to manage, procure and analyze your talent with completetransparency, real-Ɵme control, high performance and decision-enabling business intelligence.For more informaƟon call +1-888-DCR-4VMS or visit www.dcrworkforce.com7815 NW Beacon Square Blvd. #224Boca Raton, FL 33487Phone: 561 998 | f lin twiƩ tw © 2012 DCR Workforce, Inc. All Rights Reserved. DCR Workforce and Smart Track are Registered Trademarks. CCO — 082912