Contractor Misclassification Audit

We classify workers based on employment laws, international labor laws, and local tax compliance requirements. The decision between a 1099 Employee, Form 1099-NEC contractor, or a W-2 Employee depends on factors like control, work hours, and dependency on the client. Our compliance management process ensures your workforce is aligned with global standards while reducing compliance risk management issues and penalties.

Misclassification of contractors as employees can trigger severe tax compliance liabilities. Businesses may face repayment of missed PAYE (Pay As You Earn) taxes, unpaid employee benefits, retroactive social security wages, and even missed 13th month pay entitlements in certain countries. Authorities may also demand backdated Provident Fund (PF) or Central Provident Fund (CPF) contributions. These penalties can extend to missed P45/P60 Forms, fines under labor law, and reputational damage. Our proactive payroll audit services help mitigate these risks.

Yes. We conduct pre-engagement compliance checks to determine whether a role should be treated as a contractor or as a Salaried Employee under an Employment Agreement. For high-risk roles, we provide remediation strategies—ranging from contract restructuring to transitioning workers onto an Employer of Record (EOR) or International PEO (Professional Employer Organization) model. This supports smooth Employee Onboarding, protects Employee Retention, and ensures compliance with Global Workforce Strategy needs.

Absolutely. We draft locally compliant Employment Agreements that cover Intellectual Property (IP) assignment, Confidentiality, and statutory Employee Benefits in line with local Employment Laws. Our contracts also include Notice Period terms, Gratuity or End of Service Gratuity clauses where mandated, and alignment with Data Processing Agreements (DPA) under GDPR (General Data Protection Regulation). This ensures global businesses are safeguarded against disputes and future liabilities.

We provide end-to-end support in transitioning high-risk contractors to compliant employment under our Employer of Record (EOR) model. This includes drafting Employment Agreements, setting up Global Payroll with accurate Gross to Net calculations, managing Employee Onboarding, and ensuring contributions to Auto-Enrolment Pension Schemes or local Social Security Wages. By handling Cross-Border Payments and ensuring International Tax Compliance, we minimize business disruption while improving Employee Tenure and Employee Retention.