1099 Classification for your contingent workforce
As more and more Companies realize the advantages of building a flexible, diverse and multi-talented workforce through the use of contingent labor, it leaves procurement and staffing professionals with the burden of determining whether your organization will allow or not allow contract employees to operate in a 1099 capacity through your vendor base.
USS has consulted with several of our client’s Risk Management Professionals, Employment Attorneys, Human Resource Professionals as well as Tax Attorneys to fully understand both the risks and rewards of establishing a 1099 program.
In order to maintain the integrity of: Master Service Agreements, Insurance Policies, Workers Compensation and General Liability it is USS’s stance that a “W-2″ arrangement is typically the best strategy in protecting both the client, MSP/VMS and the Employee however our firm has developed and implemented a 1099 plan for specialized occasions that engaging a contractor in a traditional manner is not best suited.
For example, organization “X” might require a highly skilled (and very expensive) consultant to evaluate your corporate marketing budget under a defined task order or open ended purchase order. In many cases, this might be an ongoing requirement that is sporadic and not defined by a 40 hour work week with direct day to day supervision. (a true consultant) This would be a prime opportunity to allow your staffing USS to properly recruit and do a classification analysis of the job description in order to find a candidate who can work on a 1099 basis in a fully tax, legal, and risk compliant manner. Allowing this consultant to multi task projects will minimize cost to your organization without sacrificing quality and exposing yourself to the liabilities generally associated with a 1099 contractor (given the job requirements & he/she meet the proper classification)
USS is very interested in helping educate and/or execute our 1099 Classification & On-boarding program with new clients.