Corporations today know of the risks regarding misclassification, (if they don't they should!) but many feel that they're not a target and this sort of penalty won’t happen to them.  That's not necessarily true.  The perception that they are small and will be the last on the list to be placed under the microscope, audited and fined is also a misconception.

Big or small, government needs and wants that money. Big companies get hit with huge fines and smaller corporations get hit with smaller penalties. But, relatively speaking, the pain is the same.

How can your company avoid the misclassification risk and the associated penalties?

First a quick analysis of your present situation should occur:

1. What % of my workforce is permanent, temporary, and contractual?
2. When, why and how do I hire my temps?
3. What is the average length of their assignment?
4. When, why and how do I hire my contractors?
5. Who is and how are we engaging them, managing them, paying them?
6. Are we aware of the latest regulations regarding the proper management and hiring of our contractors?
7. If we are at risk, how much would this cost the company?
8. What are the benefits or risks of managing them internally versus using a professional expert vendor?
9. What service lines are my temps and contractors in?
10. Do we have the adequate insurance in place, do they?
11. Are we classified properly with WSIB?

The second part of the process is a customized plan. The answers to these questions should give you a better idea of your current status to then take action with an effective plot to mitigate or even eliminate the misclassification risk. By the way, you may also find that you save your company a great deal of money in the process as your administration and workforce processing is streamlined.

About HCMWorks

We are a contingent workforce service provider helping organizations gain better access to talent through the use of independent contractors, consultants, temporary workers, freelancers and other non-payrolled employees. We provide the expertise, the technology, and processes to help you reduce your workforce costs, mitigate against misclassification and co-employment risks, and increase the efficiency and timeliness of your contingent recruitment process. Read more about what our clients say about us here.