Independent Contractor (IC) Evaluation
Independent contractor or Employee
To find out whether a worker is an Independent Contractor or an Employee, CWS Israel works with our clients to ensure contingent workforce compliance, to mitigate unnecessary risks, and avoid potential losses, due to contractor misclassifications.
"CWS Israel's expertise in compliance dramatically mitigated misclassification risks, saving KellyOCG and their client over $5M. Their proactive and detailed approach in contractor classification exemplifies their commitment to ensuring legal and financial security for their partners."
US Readers – 1099 Vs W-2
UK Readers – ICs Vs Employees
CWS Israel conducts various tests to determine whether or not a worker can be classified as an employee or as an independent contractor.
CWS Israel conducts various tests to determine whether or not a worker can be classified as an employee or as an independent contractor.
Corporate fit test
- Role and Seniority within the company
- Salary and remuneration plan details
The assimilation test
Does the worker have the following:
- Supervisor / direct manager
- Team of peers, or does the worker work alone / independent
- Is the activity of the worker an integral part of the company's activity, or is it complimentary activity?
- Exclusivity - does the worker provide services to the company, or do they have other clients?
- Reporting - business expenses, taxes and social security liabilities.
DEPENDABILITY
Who's required to perform the work? Is the worker required to perform the tasks personally, or can they appoint someone else? In the event of the worker's absence, who's required to find a replacement?
SUPERVISION
Does the worker report to a supervisor? What is the level of flexibility in the workplace?
WORK HOURS
What work hours are required from the worker? Are they rigid or flexible?
PLACE OF BUSINESS
Is there a specific requirement to work in a specific location? If so - where?
TOOLS OF TRADE
Who's providing the equipment required to perform the work? The worker or the company?
CONTRACTUAL AGREEMENT
How is the relationship defined in the contract between the entities?
PAYMENTS AND CONTRIBUTIONS
How's payment made? Is it coming from HR /Payroll, or Procurement department? Who's paying the taxes and other obligations?
DURATION OF SERVICE
How long is the relationship for? Does it have breaks, or is it constant?
Calculate your own risk using our Corporate Risk and Exposure Calculator.
Corporate risk and exposure Calculator
Disclaimer: This calculator is provided here in order to assist you with an estimation of the risks and associated costs involved with misclassified contractors. Keep in mind that this risk exposure does not include any other wages and claims related costs.
Note - This is a generic estimation only and does not replace any legal advice.
YOUR POTENTIAL EXPOSURE is [IRC_RESULTS]
