Note: This tool is for informational purposes only and is not a substitute for legal or tax advice in your jurisdiction.
Easily navigate classification compliance
No matter your current risk level, we can help you comply with local labor laws in 185+ countries. We have an unmatched track record of compliance and have mitigated the financial and legal risks of employee misclassification for companies of all sizes.
Easily pay and manage contractors worldwide
Our Contractor Management solution gives your contingent workers a streamlined onboarding experience and on-time, accurate payments.
Access our global workforce platform to easily manage your contractors so you can focus on what matters most—growing your business.
Easily convert your contractors to employees
As an employer of record (EOR) with unequaled compliance expertise, we can convert any misclassified contractors to full-time employees, keeping your company in good standing with local regulations.
Spend less time studying labor laws and more time driving business success.
Get deeper insights on employee misclassification with these resources
Employee Misclassification Penalties: What Employers Should Know
How to Convert a Contractor to an Employee: A Guide for Global Businesses
Employee Misclassification: Complete Guide
FAQ
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What constitutes employee misclassification?
Employee misclassification is when an employer incorrectly categorizes a worker as a contractor instead of a full-time employee. This arrangement negatively impacts the worker—depriving them of entitled benefits and tax withholdings—so it is illegal in most jurisdictions.
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What happens when you misclassify an employee?
Companies that misclassify employees are subject to legal fines and penalties as established by local labor departments. Some secondary consequences of employee misclassification can include reputational damage, low employee morale, and talent recruitment challenges.
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How do you correct employee misclassification?
If your company has a high risk of employee misclassification, we recommend mitigating the risk by partnering with Velocity Global as an employer of record (EOR). This approach ensures compliance with local employment laws without requiring your organization to set up a local entity.
Contact our team to learn more about Velocity Global’s compliance expertise and how we can provide a smooth transition for your employees.
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How does the employee misclassification risk assessment work?
Answer a series of 10 questions about your contractor’s work, responsibilities, and relationship with your company. Based on your responses, you’ll get immediate insights into your misclassification risk level. The self-assessment is designed to be quick and confidential, requiring only general information about the contractor’s role and your engagement with them.
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Is the employee misclassification risk assessment applicable to all countries?
Yes, the tool is designed to provide general guidance applicable to a wide range of countries. However, employment laws vary significantly by jurisdiction. For country-specific legal advice, we recommend consulting with a legal professional or contacting us to learn more about how EOR can mitigate risk.
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Is the employee misclassification risk assessment a substitute for legal advice?
No, the tool is for informational purposes only and is not a substitute for legal or tax advice in your jurisdiction. For a comprehensive evaluation, you should consult with a legal professional.
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