Why Compliance Matters in 2017
With a new era of quickly changing regulations and market trends, compliance is now the top challenge and focus for employers in 2017. The year began with a change in administration, bringing along an overhaul of employment law. In addition, the increase in utilization of contingent labor has continued. Contingent and contract workers, freelancers and independent contractors are flooding the labor market in more numbers than ever before, a trend known as the “gig economy.” With this trend, the risks of non-compliance grow. The federal government is now eager to enact more stringent policies to ensure compliance with tax and regulatory standards. In particular, the United States Department of Labor is more focused on misclassification of workers and has heightened reactions to these cases. Businesses today cannot afford to overlook the importance of maintaining compliance in managing their contingent workforce.
It is easy for an employer to lose control over the contingent workers being integrated into the employee base; the results can be devastating. The rapid influx of these workers in and out of the organization creates a vulnerability to mismanagement. Employers must consistently observe all federal, state and local rules throughout the life cycle of each and every contingent hire or face harsh consequences. Misclassification of contingent workers can leave a business liable for back taxes, social security, health benefits and more. Failing to fulfill employer mandates under the Affordable Care Act can also be a costly mistake. Inconsistent wage and hour calculations can leave a business reeling with penalties. Non-compliance also carries the risk of a damaged reputation in the eyes of the public and the business world. To avoid these outcomes, employers should consider outsourcing management of their contingent workforce to an agency that better understands these practices, customs and laws.
At NexusCW, we believe the benefits of a contingent workforce should not be prevented by the challenges of maintaining compliance. Contingent and specialized talent are proving to be invaluable in today’s market. Employers cannot afford to miss the opportunity to capitalize on these labor sources. By effortlessly streamlining compliance and workforce management, we allow you to do just that. Our team is here to put our years of expertise to work for you. Mitigating your risk of non-compliance means regaining agility and flexibility in shaping your workforce. Contact NexusCW today to find out how we can help.