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March, 22 2009

Independent Contractor Classification Tip #6

Posted by Liz Greene

Here's our next independent contractor classification tip #6:

Re-assess compliance with every new assignment or, at a minimum, annually. 

The only way to ensure compliance is maintained is to re-assess, re-assess, and re-assess.


A simple change in any of the three control factors, such as management oversight when changing to a new project, can disqualify a previously compliant contractor. In addition, contractors might cancel insurance coverage without your knowledge, and the resulting lack of coverage could indicate either business risk or reclassification risk for your firm.

Bottom line: use a disciplined approach and a technology platform that allows you to re-assess contractor compliance on a regular schedule, such as a technology platform that prompts for re-assessment before a new work order can be issued.

Tags: independent contractor, classification, compliance

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