Use our Compliance Checklist to Minimize Contractor Risk

By MBO Partners | June 10, 2021

professional consultants working in office

Engaging an independent contractor is different than hiring an employee because different laws apply to each category of worker. If your organization engages independent contractors, it is important to consider how your company will comply with relevant laws, policies, and regulations.
For example, while companies have the ability to schedule employees and control how they work, independent contractors are their own business entity. They are responsible for paying their own taxes, providing their own benefits, and completing the work outlined in their contract as they see fit.
Properly classifying workers is a big deal because misclassification can result in audits, fines, penalties, lawsuits, and negative publicity. In order to minimize risk and stay compliant, it is important to understand how federal, state, and local laws view independent contractors versus employees and ensure that your company abides by these rules. Use the checklist below as an accompanying guide to determine whether a worker should be classified as an independent contractor or as an employee.

contractor compliance checklist

While the above factors cover the basics, keep in mind that they are not all-encompassing and they may not apply to every situation. In order to make the best possible classification decision, many organizations partner with a firm like MBO that specializes in independent contractor engagement that can help you properly assess the worker status of talent.

Download your own compliance checklist here

The information provided in the MBO Blog does not constitute legal, tax or financial advice. It does not take into account your particular circumstances, objectives, legal and financial situation or needs. Before acting on any information in the MBO Blog you should consider the appropriateness of the information for your situation in consultation with a professional advisor of your choosing.

Related Posts

group of professional consultants working in office

5 Ways to Build Strong Client/Contractor Relationships

September 23, 2021

Build positive, successful relationships with your independent workforce with these five tips.

consultants working in office

Increase Adoption of Contingent Workforce Management Policies

September 22, 2021

One of the most valuable resources to organizations today are independent professionals. This component of your total workforce can bring in much-needed expertise, best practices, and delivery capabilities. However, that value can be quickly lost without internal buy-in. Adherence to and understanding of your contingent workforce management program is critical to remaining compliant, attracting top…

professional consultants in group working at desk

Improve Workforce Management with a Chief Freelance Officer

September 16, 2021

Freelancers, independent contractors, gig workers, entrepreneurs, etc. create the independent workforce and are changing the way we view and understand work. Today, millions of Americans report working full-time providing professional services. The large majority of these workers have chosen this path of independence and are happy with their choice. From the perspective of enterprises, there…

Learn more about the MBO Platform

For Independent Professionals

Start, run, and grow your independent business with MBO

For Enterprises

Find, manage and retain top-tier independent talent