Hiring contractors may lead to misclassification risks. By engaging contractors for continuous time periods you face financial liabilities, including penalties, unpaid taxes, legal fines and reputational damage.
Contractors are not entitled to perks and benefits. To provide a contractor with perks like health insurance, retirement savings options, and paid time off, you must first turn that contractor into an employee.
A contractor who consistently clocks a certain number of hours signals efficiency. This translates into cost-effectiveness when they become an employee
Converting from independent contractor to employee mitigates risks associated with misclassification and labor law compliance
As a contractor’s tasks expand, they accumulate specialised knowledge. Transitioning them to a full-time position ensures you retain their expertise
Convert your contractor to employee in 24-hours with Horizons
By entrusting an EOR to manage employment-related operations such as payroll, tax compliance, and benefits administration, you can significantly reduce administrative workload
EORs have expertise in navigating the complexities of different labor laws. They ensure that the contractor to employee conversion is legally compliant, mitigating the risk of misclassification and associated penalties
EORs handle all administrative tasks related to employment, such as payroll, tax withholding, and benefits administration, making the transition smooth and hassle-free for both the employer and the contractor
EORs can expedite the onboarding process, reducing the time it takes to convert from contractor into a full-time employee, and enabling them to contribute to the company’s objectives more quickly
EORs like Horizons provide access to benefits like health insurance, social security, and paid time off, making the transition more attractive to the contractor
Assess the risk of wrongly classifying an employee as a contractor and avoid penalties for your business.
Full-time employees require direction and supervision from their employers around performing their tasks. They work on a long-term basis and are dependent on their employer for direction, scheduling and performance. The employer is responsible for supervising and monitoring their work and performance, as well as reporting, paying payroll and managing taxes on their behalf.
If you don’t convert your contractor to a full-time employee when required by labor laws or contractual obligations, you may face legal consequences, including potential fines or penalties for misclassification. Additionally, your contractor may file a complaint or lawsuit for employment rights and benefits they believe they are entitled to as an employee, such as overtime pay or benefits. It’s essential to adhere to applicable laws and contracts to avoid these potential issues.