We generate fears while we sit. We overcome them by action. -- Dr. Henry Link
Nathan is also an independent contractor compliance partner who offers customers experience and knowledge of the complex and ever-changing regulatory environment encapsulating the classification of workers as employees or independent contractors. He approaches questions about classifying workers with an eye toward providing companies with flexible solutions that comply with government standards. Workers who are often involved in the question about classification include freelancers, consultants and self-employed individuals.
In today's economy, there are three factors that contribute to the complexity of the classification issue. First, companies demand that their managers produce results quickly. Managers often seek skills and experience with little notice and frequently are less interested in whether the worker is an employee or independent contractor and more interested in whether the worker has the skills and can deliver results in time.
At the same time, highly skilled individuals want to take more control of their professional lives and choose what projects they work on, when they work and where they work. Entrepreneurs or solo-preneurs strike out on their own and seek to be treated as their own companies. They resist the classification of themselves as employees under the control of a company. Individuals striking out on their own and being their own bosses is the heart of the American dream and should be encouraged.
Finally, some companies seeks to avoid paying payroll taxes, unemployment taxes and workers compensation insurance premiums and classify their workers as independent contractors. While many of these companies cannot justify treating the workers as independent contractors by the amount of control they exercise over the workers, it is hard to identify and enforce the proper classification. A number of studies of the construction industry suggest that some construction companies hire workers, classify them as independent contractors, and are able to submit lower bids for construction projects than other companies who hire workers and treat them as employees.
Companies seeking to engage with independent contractors are faced with needing the skills, not wanting to alienate solopreneurs who might have needed skills, and wanting to avoid being scrutinized as a company accused of misclassifying workers. Nathan helps clients navigate through this complex environment and keeps them up-to-date on regulatory and legislative developments.
History Working on Independent Contractor Compliance
Nathan started working on independent contractor compliance when he was the payroll manager for Select Appointments North America (SANA). SANA had grown quickly and the policies and procedures had not kept pace with its grown. Nathan researched independent contractor classification and developed SANA's policy and independent contractor questionnaire. The questionnaire was based on the IRS's Form SS-8 -- Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Nathan also evaluated the questionnaires and made the determination whether a worker qualified as an independent contractor.
In subsequent years, Nathan update and refined the policy and questionnaire. While at GMS, Nathan updated the questionnaire to reflect changes that had been made to Form SS-8 Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. Nathan managed the vendor relations group who was responsible for reviewing and evaluating the questionnaires, verifying insurance and qualifying workers as independent contractors.
When Nathan returned to work in Randstad Professionals' corporate offices, he again worked on the independent contractor policy. The divisions of Randstad Professionals had different approaches and processes for evaluating workers and determining if they were employees or independent contractors. Nathan led a working group with representatives from each division and drafted a policy and questionnaire. Nathan led the group, incorporated changes and suggestions, and implemented the new policy and process across all divisions of Randstad Professionals. He conducted trainings and developed checklists.