Risk Mitigation & Compliance
Contingent Workforce Risk Mitigation
RightSourcing has the contingent workforce risk mitigation expertise you need to ensure compliance with changing federal and state regulations. Worker classification can be a regulatory minefield. With former IRS agents on staff, RightSourcing experts will:
- Vet contingent workers to ensure proper worker status, protecting you from significant financial risks.
- Provides education and training.
- Deliver validation, process standardization, advanced analytics, total spend visibility, independent contractor optimization, file management, and ongoing reviews.
Whether you are concerned with avoiding the inherent tax and benefits risks associated with the use of these workers, determining if your professional workers are exempt from overtime or proactively addressing the dual risk in using contingent workers and small suppliers, RightSourcing can help.
Our comprehensive risk mitigation services have helped hundreds of healthcare clients across the nation to proactively ensure compliance with federal and state regulations.
The tax and benefit risks associated with worker misclassification and co-employment are considerable. This is why healthcare facilities have been turning to RightSourcing to provide evaluation of the proper classification of workers as employees or independent contractors and co-employment risk mitigation since 2001. Potential implications of worker misclassification range from IRS fines and assessments, to liability for unpaid overtime, to state-specific penalties. Healthcare facilities need to ensure that they and their contingent labor suppliers are compliant with all federal and state laws and regulations to avoid substantial liabilities. There is no single test to distinguish an employment relationship from an independent contractor relationship, at either the federal or state level. This leaves healthcare facilities vulnerable in the event of an audit by tax or other regulatory authorities, such as the Joint Commission.
RightSourcing takes great pride in our risk mitigation and compliance processes and utilizes sophisticated VMS technology along with the expertise and diligence of our staff in facilitating the processing and management of staff credentials. As a Joint Commission-certified organization, we understand the importance and requirements for credential audit and maintenance and employ a multi-pronged approach to ensure compliance and quality. Our Quality Assurance Team is dedicated to risk management and supports our onsite program management teams to ensure healthcare clients receive the highest quality delivery of services and support.
Due to the unique factors considered and the multitude of liabilities companies may face, the actual cost of worker misclassification is unknown.
RightSourcing’s Contractor Compliance Services program provides our clients with a best in class, comprehensive risk mitigation program. Our expert team of Compliance Analysts has successfully evaluated thousands of engagements to ensure our clients are safely engaged with properly classified workers, across industries, in this rapidly evolving and changing world of independent contractor classification.
1099 Risk Assessment
The most accurate way to assess a client’s potential misclassification risk is for RightSourcing to conduct a non-invasive analysis of our client’s 1099 population. The goal of this process is to gain an understanding of the potential tax risk associated with misclassified independent contractors. The assessment will categorize the potential risk and apply the appropriate fines, backpayments, and penalties based on the Internal Revenue Code. In addition to the federal tax risk, RightSourcing calculates state tax risk based on a consolidated average formula, which conservatively estimates misclassification costs across the United States.
RightSourcing's services for supplier management, compliance and risk management, dedicated support from an on-site team, sophisticated technology and streamlined processes have allowed my team to focus on patient care.
The complexities of managing worker classification and co-employment risk mitigation necessitates that healthcare organizations have the right systems and processes in place to ensure they remain compliant. The tax and benefit risks associated with contractor misclassification or co-employment are substantial. This can include fines, penalties, and even lawsuits if workers are misclassified. This is why healthcare organizations across multiple geographies turn to RightSourcing for Contractor Misclassification and Co-Employment Risk Management.
Risk mitigation expertise – RightSourcing implements leading practices, staying ahead of tax and labor changes in the industry. Our compliance team helps guide clients to mitigate risk and co-employment, independent contractors and FLSA classification, while implementing policies that drive business goals. Our depth and breadth of expertise in this category is unmatched in the industry.
As healthcare organizations focus on the “gig” economy, more technologies and platforms provide companies with additional channels to source highly specialized talent. However, the federal and state labor authorities have focused on ensuring compliance with varying rules and complexities creating substantial risk. RightSourcing is uniquely positioned to help our clients safely engage talent while implementing processes to mitigate the associated risks.
RightSourcing’s current and future strategic vision includes:
- Providing clients with market rate guidance to ensure competitiveness in acquiring and retaining talent
- Creation of client specific talent pools leveraging their brand and employee networks
- Qualifying independent contractors and making recommendations on safe engagement practices
- Educating and informing clients of an ever-changing legal landscape and strategies to best position their enterprise wide programs for the future