Mindlance Payroll Services is responsible for transitioning pre-identified employees of the client onto Mindlance rolls and managing the HR, Admin and Regulatory compliance
Mindlance helps clients overcome the obstacles of engaging and managing independent contractors. Our innovative contractor-focused solution minimizes your exposure to IRS 1099 reclassification and co-employment risks, while reducing your business's overall contractor-related costs and making it easy to rapidly deploy talented professionals. Further, our contractor consolidation services dramatically reduce administrative costs and give you new-found visibility into your services spending.
Risk Assessment & Mitigation
Minimize the Risk of Using Contractors and Consultants - While contractors, consultants, and freelance workers represent a convenient and cost-effective way to keep your business flexible, their use can incur serious risks for your business. Without an experienced partner to help you navigate the legal details of using contingent workers, your business could be setting itself up for substantial fines, Sarbanes-Oxley violations, or even class-action lawsuits.
But it is possible to use contractors safely—even ones you find on your own.
With over 10 years of experience administering the contingent workforce, Mindlance understands the complexities of 1099 risk. Our experts can assess your business, localizing problem areas and offering solutions to mitigate your risk.
Eliminate IRS 1099 Reclassification Risk - Engage contractors as 1099's? Be careful. The IRS claims to lose nearly $350 billion a year* in unpaid taxes, with $39 billion attributed to underpayments or non-payments by independent workers. IRS agents are very motivated to make sure businesses only engage contractors who comply with their requirements for independent contracting.
Usually, W-2 employment for your contractors is the best choice. Individuals who work as W-2 employees—from whom taxes are withheld—eliminate the risk posed by 1099s and sole-proprietors whose tax payments are not guaranteed. And while it is the individual contractors who are responsible for their taxes, the IRS finds it more effective to pursue compliance at their client companies.
If the IRS finds your business is using non-compliant contractors, it can reclassify them as W-2 employees. And when that happens, look out: Penalties include back taxes, with interest, plus a fine of between 12% and 35% of the total. These penalties can easily stretch into the millions of dollars.
Mindlance eliminates reclassification risk by assessing your contractors for compliance with IRS regulations for independent contracting and offering safe W-2 employment to those not in compliance. Mindlance also provides General Liability, Workers' Compensation, and other required insurances, all of which further reduce risk.
What if contractors resist converting to W-2?
Mindlance has designed its services for contractors to appeal to even the most independent professionals. We successfully convert over 95% of client-referred 1099 contractors to W-2 employment. This gives clients the peace of mind of knowing they can introduce the risk-mitigating services of Mindlance without alienating their contractors
Consolidation & Administration - Our contractor engagement solution is the preferred method to quickly and cost-effectively work with virtually any independent contractor. Our administration and contractor payroll and consolidation services makes it easy to engage, pay, and manage your independent contractors, centralizing them under a single contract. The result: enterprise-wide consistency, minimal administration, and huge cost savings.
Maximum Flexibility - Mindlance contractor payrolling is configurable to your needs. We system supports contract talent regardless of industry, billing rate, or location—even contractors working abroad. Our payment services handle W-2 individuals, as well as 1099 independent contractors and small businesses. Unlike most contractor payment providers, Mindlance can accommodate a wide variety of assignment types (including hourly, project-based, and fixed-price) and pay cycles (including weekly, bi-weekly, and monthly). We even provide advanced payments for contractors, pending clients' credit review.
Very Low Cost - Mindlance’s services average at only 5% of the contractor's billings. You may choose to pay this fee yourself or, because it is a function of contractors' billing rates, allocate some or all of the cost to independent contractors by adjusting their rate.
Experienced with the Inexperienced - Experienced 1099 and S-Corp consultants already understand the financial implications of the independent work style; specifically, the responsibility for paying their own Employer Payroll Taxes and the need to wait several weeks or more before receiving payment. They therefore negotiate a billing rate that already factors these in.
But what about contractors who have always been W-2 workers in the past? They may not understand Employer Payroll Taxes and probably expect to be paid regularly (and immediately) for their work. Typically, their concern is not their billing rate, but their pay rate (or the amount that they receive).
When contractors who are new to working independently are referred to Mindlance, we help convert their pay rates to billing rates that account for appropriate taxes. This promotes the smoothest possible transition for even the most inexperienced contractor.