5 Pitfalls of an Independent Contractor Scheduler

27-Mar-2017

Choosing a scheduler doesn’t have to be risky, especially if you’re a financial wholesaler or advisor. As a financial professional, you can avoid dangerous pitfalls as long as you know if they are an independent contractor or an employee of a service provider like Executive Scheduling Associates? Don’t make the mistake of thinking an independent contractor and an employee are the same thing. They aren’t.

5 PITFALLS OF AN INDEPENDENT CONTRACTOR SCHEDULER

1. Service Degradation
Did you know that scheduling firms that employ independent (1099) contractors as workers cannot legally control or supervise their workforce? How can a service provider promise to provide superior service if they cannot legally direct or supervise the methods in which the service is provided?

2. Lawsuits
Did you know that schedulers that are independent (1099) contractors are not covered by worker’s compensation and, if injured, can sue for damages?

3. Unnecessary Audits
Did you know that IRS and state agents are very motivated to make sure businesses only engage contractors who comply with federal and/or state requirements for independent contracting?

4. Tax Evasion
Did you know that while it is the individual contractor’s responsibility to pay their taxes, the IRS finds it more effective to pursue compliance at their client companies if independent contractors evade taxes?

5. Penalties and Fines
Did you know that if the IRS determines your business is using non-compliant contractors, whether you or the firm you are contracting them through, it can reclassify them as W-2 employees, resulting in penalties that include back taxes, interest, plus fines between 12% and 35% of the total amount in question?

THE ESA SOLUTION

ESA is the best choice for your preferred scheduling firm. We eliminate dangerous pitfalls by employing W-2 employees, period.

•   We perform pre-employment screenings and background checks.

•   We legally train, manage and direct our workforce for compliance and superior service quality.

•   We withhold and pay employee federal and state taxes.

•   We pay benefits to full-time employees (medical, vacation, etc.)

•   We carry insurance: worker’s compensation, general liability, and employment practices.

Give us a call today!

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

https://justworks.com/blog/consequences-misclassifying-workers-independent-contractors

http://theemplawyerologist.com/2016/01/21/can-you-be-liable-for-an-independent-contractors-injuries/

 

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