How do I track the compliance status of my company’s independent workforce and ensure that we won’t be faced with misclassification?
A. Using a system that combines electronic processes with human oversight, IPS performs an annual compliance check of each independent worker in your organization to ensure that the worker is properly classified. At any time, if we discover an independent is in a state of non-compliance, we reclassify them as a W-2 employee and put them on the IPS payroll – eliminating the possibility of risk to your business. In addition, for audit purposes, or at your request, IPS can provide you with a detailed report of the compliance status of all your contract workers. Q. I heard that the “20-Question Test” (or 20-Factor Test) was going to be invalidated and that our business would no longer need to prove compliance using this test. A. Since Section 1706 of the Tax Reform Act was passed in 1986, the “20 Questions Test,” which is the primary vehicle companies refer to when determining independent contractor status versus permanment employement status, has been up in the air. There always seems to
