Your contractors might legally be employees. You won't find out until someone sends you the bill.
Misclassification costs show up years later as back taxes, penalties and claims, usually when you're trying to sell the business, raise money, or answer an audit. A signed contractor agreement doesn't decide it. How the work actually happens does.
How it usually surfaces
A contractor files for unemployment
Or for workers' comp after an injury. The state asks why they weren't on payroll, and often reviews everyone else doing the same job.
A buyer's M&A diligence team asks for your contractor list
It's one of the first things acquirers check. Undocumented classifications become an escrow holdback, a price cut, or a dead deal.
A worker reports you to the IRS
Any worker can file IRS Form 8919 to report Social Security and Medicare you didn't withhold. That flags the engagement to the IRS.
What could you owe?
A rough federal back-tax estimate if your contractors were reclassified as employees. Pick the closest answers.
Everything you get with a ClassifyRight membership
Your always-on compliance file for every contractor you pay. Describe each role in plain English. ClassifyRight classifies it under the federal test and your state's test, shows you exactly what to fix, and keeps every file current as your roles and the law change.
Every contractor, classified and on file
The federal and state tests applied, factor-by-factor reasoning and a clear risk rating. Dated and saved, so you can prove what you knew and when.
Know exactly what to fix
Step-by-step changes for every risky role: how the work is managed, which contract terms to change, or when it's time to move the role to W-2.
Change a spec. See the new answer instantly.
Update any role as often as you like and it's re-rated in real time. A two-minute quarterly check-in catches the roles that quietly drift.
When the law moves, your files move with it
Federal and state tests change often. Affected roles are re-rated automatically, with a plain-English note on what changed and what to do.
Contractor paperwork that holds up
State-specific contractor agreements and onboarding checklists, so every new engagement starts on the right footing.
Ready the day a buyer asks
One click produces every contractor, every decision and every change since, in a single PDF ready for a data room or an auditor.
One plan. Cancel anytime.
Less than a single hour of an employment attorney's time, every month, for every contractor you pay.