Independent Contractor Compliance

Independent Contractor Compliance – ClearIC

Our Independent Contractor Compliance Services

A multitude of different regulations and qualifying criteria exists in determining Independent Contractor classification, making it difficult to determine if a worker should be an Employee or an Independent Contractor (1099).

The ClearIC evaluation program encompasses federal and state regulations to produce a clear, consistent, and documented process for 1099 compliance.

ClearPath has incorporated industry-leading technology to automate the evaluation process, in a program managed by our experienced compliance specialists.

You get the best of both worlds: online access to a logical, easy–to–use system, as well as attention to detail and expertise. This is what sets us apart.

Comprehensive Protection with ClearIC

Online evaluation and classification program for Independent Contractors
Documented 5–Step, 2–Person Recommendation Process
Comprehensive training programs for managers and consultants
Creation of Case Defense File for federal or state audits
Independent Contractor Discovery and current state evaluation
Conversion of ineligible 1099 Contractors to W-2 status
Compliance with Independent Contractor regulations, co-employment issues, wage & hour rules

Simple Process, Solid Solution

Prospective Independent Contractors and hiring managers complete a simple, quick, online survey based on IRS, Department of Labor and State regulations governing Independent Contractor classification. Contractors are then required to upload all supporting business documentation, which is verified and electronically stored.

ClearPath Compliance Specialists analyze the completed surveys and review the supporting documents in order to recommend the appropriate worker classification. The recommendation is made after a comprehensive 5–Step, 2–Person Recommendation Process. Detailed notes are made during the review process to substantiate the recommendation and provide information on the key determining factors considered.

All information is electronically stored in a Case Defense File to ensure full accountability of due diligence.

Developed with time, accessibility, and security in mind, the online surveys can be completed in as little as ten minutes through our secure, encrypted compliance portal. Each step in the process, from the initial request to the final recommendation, is documented and date-stamped, enabling detailed reporting and review.

Creation of Case Defense Files

In the event of an audit, the ability to demonstrate a clear and consistent process for validating 1099 contractors is critical.

Case Defense Files are created automatically for each evaluation conducted through our system. Documents in the file include:

Survey answers from the hiring manager and the contractor;
All uploaded documents which support the contractor’s business structure (including all proof-of-insurance documentation);
Recommendation notes made by the ClearPath compliance.

All files are available in print or downloadable file formats.

Compliance Training and Education

Your hiring managers, through innocent actions and bad practices, can unknowingly put your company at significant risk.

ClearPath provides comprehensive education and training programs, combined with a change management strategy, to ensure the success of a new program. Our training programs include seminars, webinars, and training sessions for our clients, to educate key stakeholders and hiring managers on mitigating the risks of using contract labor.

Corporate Policy Enforcement

Ensuring compliance with your corporate policies should be just as important for your contractors as it is for your regular employees. Corporate policy documents and procedures can be integrated into our onboarding process to include:

Enforcement of client–specific Non-Disclosure Agreements
Intellectual property protection
Background screening requirements
Break–in–service rules
Insurance requirements
Alumni / retiree re-engagement

Independent Contractor Engagement and Payment

ClearPath’s Agent of Record program lets you engage, pay, and manage your Independent Contractor 1099 workers, Corp-to-Corp, and sub-vendors under one central contract. The result is an enterprise-wide process with consolidated billing and minimal administration, delivering significant cost savings. Consultants who do not qualify to be paid as an Independent Contractors can be converted to W-2 status via our Employer of Record service.