Our Solution is Engineered for the Energy Industry’s Specific Needs
They are often referred to as “Freelancers,” “Consultants,” “Day Raters,” “1099 Contractors,” “Advisors,” “Independents,” etc. and companies have a strategic reliance on these non-employees.
What are some of the benefits of engaging a Contractor?
- Contract services rather than staff augmentation – Save money, freedom to staff your business according to your business’ needs, eliminate the time and costs associated with training
- Best practices across industries and functions – Serving multiple clients in the same sector, while applying lessons learned in applicable situations
- Analytical horsepower – Solving issues and executing strategies where the company’s skill-sets and knowledge are insufficient or where specialized expertise on specific dimensions, such as Drilling and Completions, is needed
- Fresh perspective – Bringing a critical eye towards measurement, analysis, and improvement
- Training and skill-set augmentation – Educate client employees on necessary knowledge, skills, and mindsets.
What are some of the risks of engaging a Contractor?
The penalties to companies can be staggering. Misclassifying employees as independent contractors can subject an employer to back taxes of as much as 41.50% of the contractors’ wages, according to the IRS. These penalties can go back for three years.
Independent contractor misclassification consequences can be economically devastating to a project or a company.
- In certain circumstances, an employer could be subjected to penalties that include 20% of all wages paid to the worker, and 100% of FICA that should have been withheld, including both employer and employee portions.
- In addition, unpaid overtime premiums alone can represent a substantial monetary amount, depending on the size of the workforce and the length of time that overtime pay was withheld from eligible employees.
- Audits by state agencies are even more common than IRS audits.
- State audits most frequently occur when workers classified as ICs apply for unemployment compensation after their services are terminated.
Independent Contractors can sue for negligence if they are injured on the job. This is something employees normally cannot do, because their work injuries are covered by workers’ compensation insurance.
If you would like to calculate your risk, CLICK HERE.
We are Different.
While our services are generally the same as other companies offering compliance services, there are several differences:
- Our change management strategy and game plan is tailored specifically to the energy industry, which has been a critical success factor for us.
- The energy industry is unique, so validation of 1099 independent contractors goes beyond regulatory compliance. Ensuring skills/knowledge/training/qualifications validation is part of our vetting. This is a critical element, whether the work is offshore Gulf of Mexico, the Balkans, Eagle Ford, Permian Basin or even as far as Alaska.
- Payrolling – While we provide benchmark payrolling and administrative services for non-compliant 1099 independent contractors, 1099Audit.com works with fit for purpose select payrolling providers availing companies access to best of class.
- Our change management strategy is flight risk sensitive focused on a solution for both the Company and Contractor.
We understand what companies and contractors need. We don’t over-complicate our process or services with unnecessary and unneeded features.
CONTACT US TO START THE PROCESS TODAY!