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4 Steps to Avoid Misclassification Penalties (and Confusion)

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The misclassification of employees as independent contractors continues to be a tremendous problem facing businesses nationwide. Noncompliance – whether stemming from mistaken misrepresentation or actual underhanded and/or criminal behavior – regularly costs employers a fortune in fees and fines, not to mention other significant consequences.

You can avoid misclassification penalties with these four steps:

  1. Know the difference. Making an accurate distinction between employees and independent contractors is what the whole ball of wax teeters on. By and large, independent contractors do not receive training or performance evaluations from their hiring firm, and they do not wear uniforms. Independent contractors, by definition, determine the specifics of how they do their job and utilize their tools of the trade.
  2. Never-ever ever consider workarounds. Misclassifying employees to avoid paying for benefits violates tax and employment law. Leave no room for accusation. Do everything in your power to avoid finger-pointing and claims of dishonesty when implementing an on-demand crew. Read up on independent contractor laws, stay current, and know every single standard set forth by your jurisdiction. Follow them to the letter.
  3. Keep meticulous written records: Make certain when enlisting the services of an independent contractor that your business relationship is clearly and explicitly defined and explained on paper. Signed contracts go a long way in confirming your due diligence if your company is ever audited.
  4. Get help. Hiring an Employer of Record not only helps you strengthen your workforce and streamline your payroll processes, but it can ensure that you avoid misclassification penalties and prevent litigation in the long run.

Maslow Media Group has the answers to important questions regarding payroll, contractors, compliance, and more. We regularly help clients avoid misclassification penalties, taking full responsibility for employment, compliance, and tax laws while your employees continue to work for you. As an Employer of Record , our team offers comprehensive solutions and a compliance safety net for small businesses. Contact us to learn more about our services today.

The post 4 Steps to Avoid Misclassification Penalties (and Confusion) appeared first on Maslow Media.

To view our Partner blog, click here

The Two Most Important Ways to Earn Temporary Workers’ Trust And Loyalty

CMMA Blog

If the internet was the spark that started the digital revolution fire, COVID-19 certainly fanned the flame. Humans did what we do. We stretched our resources to adapt to the new reality. Technology carried the flag and enabled many companies and workers to stay afloat with remote workplace solutions. But, as always, technology has limits. No matter where your workers are located and whether you ever see them face to face or not, human capital is still your most valuable resource. It’s worth taking a little extra care to keep the human in your human capital management. 

Unfortunately, the reality for many temporary or contract workers is difficult. Often, they lack access to benefits, work overtime without corresponding compensation , and deal with clients who pay late or don’t pay at all. So when you go above and beyond, you earn trust and loyalty from you workers and for your brand as a whole. 

As the workplace becomes increasingly digital, the human piece becomes even more important. 

Here Are Two Ways to Keep the “Human” In Your Human Capital Management Even In a Digital World

1. Classify Workers Correctly

It’s easy to think of worker classification in terms of compliance. And it’s true! Classifying correctly keeps the IRS off your back. But it’s also a way to take care of your people. The better you do up front at classifying accurately and setting expectations clearly, the happier workers will be. 

Accurate worker classification is an essential starting place. It’s easy to get wrong, but with your reputation and large fines on the line, it’s also important to get it right. Here’s a list of the most common classification errors  and how to avoid them. Here are some basic guidelines  for identifying the difference between employees and independent contractors.

On the other end, employers often have a difficult time keeping up with contractor and freelancer management. It’s time consuming to stay on top of ever-evolving laws, minimum wage and overtime changes, benefits eligibility, and the differences between state and local regulations. It is a worthwhile investment, though. It raises businesses to preferred client status among contract workers and helps protect them from costly fines, to boot.

2. Pay temp employees and freelancers accurately and fairly

Pay accurately and on time. Some big companies make a habit of net 90, but we don’t recommend it. Net 30 is more ethical and ultimately better for business. Here’s why . Overtime regulations or minimum wage debates are in constant flux, but here are our suggestions on this front.

Be proactive about benefits and keep up with evolving state and local laws rather than waiting for workers to knock on your door. Transparency is a great way to build trust. 

The bottom line

We know you care about your freelancers, but they only know it if you show it. Taking these measures can help you keep the “human” in your human capital management. The major bonus of handling your freelancers in an ethical way is that it keeps you compliant.

We know you’re busy. If you don’t have the time, resources, or desire to pay attention to all the details, hire an expert to keep track of contractor and freelancer management for you. Our team of experts and our PayReel OnLine software are fully equipped to help you sort out the rules and execute processes while also balancing contractor expectations, legalities, and company budgets. This quiz  can help you decide if you’d benefit from hiring a team like PayReel  

We help you care about your workers even when you’re short on time. We think happy workers and peace of mind are pretty close to priceless. 

The post The Two Most Important Ways to Earn Temporary Workers’ Trust And Loyalty appeared first on PayReel .

To view our Partner blog, click here

Workflow First Design – The Joys of a ‘Clean Sheet of Paper’

CMMA Blog

EFD International, based in Mexico City, had become a leading name in providing production and equipment services for television, film, and commercial production worldwide – and now wanted to launch a post-production venture, called EFD Digital, to extend and build on their reputation by giving their customers world-class production capabilities that made no compromises on performance and reliability. 

They turned to Roy Santoyo, who has deep workflow expertise as an editor, colorist, and VFX artist to design their ideal facility and workflow to make sure the new venture would be a success. The task of making sure the new service could support the performance and scalability needs of a growing post-production facility would be challenging in normal times – and in a time of workflow disruption and a global pandemic, could have been completely overwhelming. 

Instead, Roy Santoyo sat down with a trusted advisor at SEAL Telecom and came to a sudden realization – that by deeply thinking about, then following the workflow that he needed instead of preconceived notions of what the facility was ‘supposed to be’ – the supporting infrastructure fell into place easily. Each decision about what he did and did not want in his workflow led to the next, and so on until he arrived at his ideal system.  

Ultimately, the system he arrived at for EFD Digital not only meets the high-performance needs of their users and creative teams, but leverages the unique capabilities of StorNext 7 software  and its software subscription-based model and platform flexibility, so that it can also evolve quickly in different directions as the company’s needs grow – for even more performance, more scalability in large or small amounts, yet for all of that, is also highly economical and efficient. 

Here’s how they did it. 

Without an existing facility or demands, Roy and the team at SEAL Telecom could truly start with a clean sheet of paper and make decisions based on the ideal workflow he wanted to ‘live with.’ Here are the sort of questions and steps he worked through that could guide your decisions as well: 

>Should they build an enormous system all at once? Budget was available to do that if needed, and if it made sense. 

On reflection, it made more sense to build the system for the first wave of business growth – but only if that same system could grow seamlessly to take on more size or performance without impacting the initial buildout. Many systems require a ‘forklift upgrade’ to add on more capability – meaning having to schedule possibly extended downtime, or worse, re-silvering storage for a new configuration. 

>Should they build around a specific type of storage and hope that it could scale to fit the entire workflow? 

There are a lot of storage platforms and systems to choose from after all, each offering a different mix of performance, scalability, or economics. Instead of rushing in and focusing on only a single part of the workflow as is commonly done, Roy and the team decided to build not just an island of storage, but choose a platform that let him fit storage characteristics to each part of the workflow with its different demands, as part of a true, end-to-end workflow. 

The number of storage environments that can accommodate an end-to-end workflow and combine different types of storage in a single platform is Quantum’s StorNext 7 shared file system . For example, to feed the high-performance needs of ever higher resolutions and uncompressed formats like EXR and DPX, they wanted the generational difference in speed that NVMe flash storage provided. Yet in other parts of the workflow, they needed the sheer performance and capacity combined, in which a large number of storage systems with spinning disks provide in a SAN shared storage environment. In still others, they needed to effortlessly scale to his first petabyte of archive storage quickly, and be ready to scale to a second and third petabyte on short notice. For this, EFD chose Quantum Scalar tape libraries.  

When put altogether, they could seamlessly compose storage from different storage types into volumes for his groups of users, segment them in any way he likes, and move content effortlessly between them from work in process, to archive, and back in a single namespace. 

>Would EFD have to change the tools he wanted to work with? Or could the storage and workflow environment make his preferred workflow solutions, like editors and asset management, actually work better? 

Rather than use a bundled solution with storage, the team selected ELEMENTS for critical project and asset management to keep all of the production teams on track, and found that it leveraged the shared storage seen by all users collaborating on the same projects in easily understandable files, folders, volumes format that looked the same on every client system, and for all workflow solutions the team used. 

>Would they have to choose between a system good for remote users or onsite users? 

In fact, the team wanted to try to get the best of onsite and remote systems in a single system if at all possible. They found that they could get the highest levels of performance and lowest latencies for creatives onsite, yet also remote sharing and collaboration with both StorNext and the media library for offsite users, or creatives in remote locations or delivery – all part of a single, well-orchestrated workflow. 

Content Production Just Got Easier 

And with that – EFD Digital had arrived at a ‘clean sheet of paper design’ that fit all of their performance requirements, at each step of the workflow, and is poised and ready to scale in any direction needed. 

Their new system, built around StorNext 7’s subscription-based software model , and their ideal mix of NVMe, disk and tape storage, lets them promise more projects to more clients faster, and gives the growing company a competitive edge in their fast-evolving industry. 

To learn more about this workflow and EFD Digital, click here.  

To view our Partner blog, click here

Managing a Contingent Workforce? Here’s Your Audit Prevention Checklist

CMMA Blog

If you work with independent contractors, you know the draw. You get to tap into outside creative resources and outsource work that is not central to your main line of business. It often allows companies to better meet budget.

On the surface, the barometer for identifying independent contractors is easy. They are self-employed and hired to do a specific job. They receive payment only for the work performed. Unlike a regular employee, they pick their projects and regularly move from client to client and business to business. Also referred to as freelancers, consultants and 1099’s, they report their own business income and pay self-employment taxes. Easy enough until you remember that nothing that involves the IRS is ever quite that simple.

 

Is Your IC really an Independent Contractor?

The IRS has very strict guidelines that define true business-to-business relationships. These guidelines are meant to prevent firms from misclassifying would-be employees and thereby avoid, either knowingly or unknowingly, a bounty of state and federal taxes.

This is a deceptively complex question that’s important to answer “yes”, because the risk of your company facing an IRS audit has never been greater.

Best Practices to Prevent an Audit

• Work with contractors who have an established business entity, with a business name and EIN to which invoice payment is made.

• Make sure your contractor provides services to businesses other than your firm.

• Have workers provide certificates of insurance, including coverage for general liability insurance and workers’ comp insurance

• Have a signed per-project agreement for services between your company and the contractor. Each project should have a contract specifying project length, compensation and liability.

• Have workers include expenses such as reimbursements for travel, phone, meals and overtime wages in their day rate.

• An independent contractor’s services should not be integral to the day-to-day functioning of your business. They should not be functioning as a division of your company.

• Watch out for pen-ended, ongoing work. The longer a contractor is with you on a full time basis, the more they take on the role of an employee.

When working with your contractors

• Do not train a contractor, direct their work responsibilities or define their work schedules. Specific instructions on these aspects of a job imply an employee relationship.

• You cannot control any aspect of their work except the results.

• Independent contractors should, when feasible, be using their own equipment. This includes computers and phones.

• Do not provide any employment benefits. Independent contractor’s should have their own health insurance, pay their own employment taxes and not receive any corporate stock options.

• You contract on a per-project basis.

• Above all, keep in mind that this is a business-to-business relationship.

Prevent an Audit

Getting audited can be costly and time-consuming even for businesses that do everything by the book. How much are you willing to pay for employee misclassification? If you have any questions about independent contractor status, trust PayReel to help you make the determination.

The post Managing a Contingent Workforce? Here’s Your Audit Prevention Checklist appeared first on PayReel .

To view our Partner blog, click here

The Art of Delegating: How to Multiply Your Bandwidth

CMMA Blog

The adage goes “If you want something done, ask a busy person.” If you are the person that always gets asked, it might be time to think about how to multiply your time using the art of delegating. Engaging a partner for events, worker management, and payroll is one of the quickest ways to increase bandwidth to actually do what they do. Put some of your responsibilities on someone else’s plate and then get yourself a mug to commemorate your status as World’s Best Boss.

Whether it’s a massive event or a one-camera film shoot, when a partner who specializes in event management manages your projects, it works out well for clients and workers alike.

Make Events Easy 

Whether you’re payrolling thousands of workers, sending a crew to an NBA game, or something in between, it’s nice to know all the details are handled. 

At PayReel, we know things don’t operate on a nine-to-five schedule and neither do we. We have an after-hours phone so we can be sure to provide speedy answers. Our online system allows you to take care of just about anything…at any hour…with a few taps or clicks. PayReel handles all the paperwork and the bonus is that we do it without any actual paper. Not having to sift through piles of identical paperwork cluttering up your desk and your headspace makes the process quicker and easier for you and for your workers.

Make Workers Happy With Speedy Payment And Paper-Free Paperwork

By managing all the payment details, including the mountains of W-4s , payroll becomes a non-event for our clients. Workers submit timecards on Mondays and we pay them on Fridays. When they’re paid quickly, they don’t need to call your office, which frees you up to do your job better. Of course, it also keeps workers happy so they are free to focus on your project and happy to come back for your next event. 

The last thing you need once you’ve hired people is to lose their loyalty on the back-end details. Whether they’re working for one day or for a month, we make sure workers get paid quickly and accurately so if you want to hire them again, they’ll be ready to pick up the call.

We’re devoted to making every single client and worker interaction a good one, which makes working with you mighty attractive for workers. As Michael, one of the freelancers PayReel pays, said, “[My Customer Experience Manager] has been superb in addressing whatever problems I have had.”

The bottom line

Clients work with us because we make your life easier and multiply your bandwidth for the things you do best. Not only does our team manage event payroll and payroll taxes; as the employer of record, we even take on all risk associated with a variable workforce. Think you might benefit from hiring a payroll service? Here’s a handy guide to find out more or contact us at 303-526-4900.

The post The Art of Delegating: How to Multiply Your Bandwidth appeared first on PayReel .

To view our Partner blog, click here

The Absolute Non-Negotiable When Direct Sourcing

CMMA Blog

It’s easier than ever for companies to use their own talent pool to meet their contingent workforce needs. Direct Sourcing allows businesses to place workers on a temporary basis, while keeping the best workers in the pipeline between projects. Direct sourcing is a great tool in the toolbox for contingent workforce management, but companies must remain vigilant to stay compliant.

Risk and compliance when direct sourcing

The real work when direct sourcing begins with risk, compliance, and payroll. Mitigating risk requires specialized skills, a great depth of knowledge, and a department with enough bandwidth to understand and follow rules on a state and federal level.

Errors can be incredibly costly in many ways, including heavy fines, damage to reputation, and loss of resources–both financially and otherwise. The rules around classification and payroll vary from state to state and on a federal level as well. Regulations change frequently as well and hiring organizations must do due diligence to make sure they keep their practices compliant and their businesses in good standing. Any company using direct sourcing simply must also include effective IC classification and payrolling services as a part of its plan.

When does engaging a partner for risk compliance, worker classification, and payroll make sense?

Sometimes a partner can fill in the gaps for payroll for a contingent workforce. Companies without a specific department to fill these roles will be served by engaging a partner with the bandwidth and skills to handle everything related to risk, compliance, worker classification, and payroll for a contingent workforce. The best partner will be able to handle every worker type a business employs.

When direct sourcing talent, many businesses find an Employer of Record (EOR) that takes care of all the administrative details of managing a contingent workforce is an indispensable part of their team.

If you’re considering whether an EOR would be helpful to your business, let us know! This is our jam.  

The post The Absolute Non-Negotiable When Direct Sourcing appeared first on PayReel .

To view our Partner blog, click here