College Students, Interns, and Compliance – Oh My!

It’s that time of year again! Companies are getting ready to walk the Yellow Brick Road to bring eager college students on-board for summer internships. Colleges and universities need assistance over the summer and may engage with contract workers to prepare for the fall. Large and small businesses are hiring seasonal workers for the summer. Maybe your company hires foreign summer interns or brings on employees’ kids for summer jobs. Has your organization thought about how you can safely engage with these workers? There is a plethora of options available to bring workers on-board. Even the Scarecrow would know sometimes you need to ask an expert in Total Talent Acquisition for help in engaging workers. If your organization finds the worker itself, called “self-sourcing,” your organization should ensure you understand the legalities of worker engagement, including; W-2, 1099, Corp-to-Corp, and Statement of Work (SOW).

Hiring Students or Interns? Use an Employer of Record

You can avoid the wicked traps of a house falling on you due to worker misclassification and the fines and penalties levied by federal and state auditing agencies. Joy Goberville, President, Enlighten 360 Degrees, LLC, an expert in Total Talent Strategies, Contingent Workforce Management, and Workforce Solutions, offers this suggestion.  “ An easy solution is to use a reputable company that provides Employer of Record (EOR) services. That company becomes the employer for tax purposes while the employee performs work for a different company. The EOR, often referred to as the W-2 Employer of Record because they are responsible for issuing W-2s to the employee, will accept the responsibility for all the traditional employment tasks and liabilities.” Hopefully, your organization has the courage of the Lion to follow the correct steps on the Yellow Brick Road to compliance and will ensure your organization is safely engaging its workers.

Every company is unique and we custom design our solutions to meet your needs. Our organization’s mission is to have a heart like the Tinman and help you engage with the right channel access for all self-sourced, non-agency contractors. ClearPath can provide you with the governance and operational support across all risk entry points into an organization, including: MSP, VMS, talent clouds, or other freelance management technologies.

If you believe your organization’s HR and IC Compliance strategy may include some flying monkeys, ClearPath can provide you with a wizardly experience and assist you in determining if your company may be at risk, and provide solutions to ensure compliance. ClearIC™ can automate and simplify the Independent Contractor evaluation process while mitigating your risk. Contact ClearPath for a complimentary 1:1 review of your current worker status.