In an era where remote and distributed workforces are becoming the norm, companies around the globe are opting to engage independent contractors rather than hiring full-time employees. The benefits of engaging independent contractors are plentiful, however, up until recently the billing and invoicing process has been less than ideal. Traditionally, managers are faced with a myriad of back-and-forth emails and phone calls to request and process invoices as well as pay their independent contractors accurately and on-time – complicated further when engaging contractors in another state or country. To mitigate their risk, businesses are turning to technology to ensure their contractors are being paid on time while also adhering to local laws and regulations.
While there are many benefits to automating your independent contractor (IC) payroll using technology, we’ve narrowed it down to the top three:
✅Time savings: Most IC payroll platforms have an online time and attendance system connected to their software. This feature collects and stores important payroll data in one easy-to-use digital platform so you can easily refer to it when questions arise about billing – thus eliminating hours of emails and phone calls.
When partnering with iWorkGlobal, workers submit their time and attendance details in an online portal. From there, managers simply login to MyVista to review and approve the worker’s invoice with just a couple clicks – iWorkGlobal then pays the worker on your behalf!
Bonus benefit: when contractors are paid on-time and without error, they will be highly satisfied working for your company, reducing the risk of needing to source new talent for future projects.
✅Ensuring regulatory compliance: With worker classification and payroll laws varying state-by-state and country-to-country, partnering with a global IC payroll partner who also specializes in worker classification, can significantly reduce an organization’s compliance-related risk. This type of partnership will also save the company money through reduced fines, penalties and settlements that may arise due to misclassification of workers, missed payroll or payments.
iWorkGlobal, an IC compliance and payroll authority, uses their tech-enabled platform, MyVista, to help companies:
- avoid costly fines by accurately classifying workers (as contractors or employees),
- gain peace of mind by paying workers compliantly based on their local labor and payroll laws,
- shift complicated payroll responsibilities away from internal HR and payroll departments
Fact: Millions of company dollars are spent each year in the U.S. and abroad for worker misclassification and payroll-related errors.
✅Cost savings: After the initial investment, organizations may find that they’re saving money due to internal process and workflow improvements. These savings might be difficult to measure at first, but can be found when companies consider how transferring responsibilities to an IC payroll partner allows their internal teams to focus their knowledge and expertise on core business activities.
In conclusion: Automating payroll can transform the way organizations manage and pay their contractors. iWorkGlobal’s IC payroll platform, MyVista, reduces the time spent on data collection and saves companies from making costly misclassification mistakes. As a result, companies are able to scale and grow their business rather than focusing their internal resources on navigating complicated HR and payroll laws.
Ready to explore what iWorkGlobal’s independent contractor payroll platform can do for your company? Click here for a list of features and to see the platform in action.