The Risk

Today’s business demands require access to top talent. An important segment of these workers expect to work as independent contractors, but engaging them as 1099s can create many kinds of risk.

Worker misclassification cost Microsoft $97 million in benefits payments in the late 1990s. The same issue more recently is costing Fedex $319 million with a potential exposure of more than $1 billion. Could this happen to you?

The IRS 20-factor common-law standard is the ultimate test of worker classification, but has been difficult to administer. Section 530 of the Revenue Act of 1978 attempted to provide some relief by providing a safe harbor for worker classification based on consistent classification and industry practice, but enforcing consistency across an organization is difficult.

IRS and state enforcement are increasing as government agencies seek to recover lost revenues. Federal and state regulations are hard to interpret. Forcing everyone to work as W-2s prevents you from using workers at the top of the talent pyramid, so what are you to do?

Mitigate The Risk with ICQ

Yurcor's Independent Contractor Qualification (ICQ) enables you to get the talent you need while reducing the cost and risk of engaging independent contractors. ICQ is a online evaluation tool that produces a clear, consistent and documented assessment of independent contractor status based on the IRS 20-question test and HR case law.

ICQ uses the web to make the evaluation process fast and easy. Automated emails guide the consultant and client supervisor to online surveys. Completed surveys generate an ICQ report that provides a clear assessment and highlights any discrepancies between consultant and client supervisor responses.

Having a consistent documented process becomes very important in an audit situation. ICQ has been adopted and co-branded by leaders in the contingent workforce management industry.

ICQ is cost effective and can be integrated with procurement on the front end, and vendor management and employer of record on the back end to provide a comprehensive contingent workforce management solution. With ICQ, you can get the independent talent your business demands without the risk.

Contingent Workforce Management

ICQ is a key component of Yurcor’s Contingent Workforce Management that reduce the cost and risk of engaging consultants.

Yurcor does not do any sourcing. This vendor-neutral position enables Yurcor to serve all the participants in the talent supply chain equally.

Businesses use Yurcor to engage consultants from staffing suppliers and independent contractors in a compliant manner.

Staffing Suppliers use Yurcor solutions to run their back office and offer procurement solutions to clients.

Consultants use Yurcor solutions as their back office and for portable health and wealth benefits.