What is it?

Contractor classification is all about figuring out if the people you’re hiring should be treated as employees or as independent contractors. The difference matters a lot because it affects taxes, benefits, and legal responsibilities.

When you classify someone as a contractor, you’re saying they run their own business. They have more control over how they do their work, and they aren’t entitled to the same benefits or protections that an employee would get. On the other hand, if they’re classified as an employee, you’re responsible for aspects like payroll taxes, health insurance, and following labor laws.

The tricky part is that different countries have different rules for how this works. What counts as a contractor in one place might be seen as an employee in another. That’s why it’s important to get the classification right from the start, especially when you’re working with people across borders.

Get it wrong, and you could face legal issues, unexpected costs, and other headaches. Get it right, and you can confidently manage your project, knowing you’re playing by the rules.

Why is it needed?

If you’re working with contractors across different countries, getting their classification right is a must. Here’s why:

• Avoid Legal Trouble: Every country has its own rules about who counts as an employee and who counts as a contractor. If you don’t get it right, you could accidentally break the law. This could lead to fines, back taxes, or even lawsuits.
• Save Money: Misclassifying a contractor can end up costing you big time. You might suddenly owe back pay, benefits, and other costs you weren’t expecting. These surprise expenses can really add up.
• Keep Things Running Smoothly: Getting into a legal dispute over whether someone is a contractor or an employee can be a huge distraction. It takes time, energy, and money that could be better spent on growing your business. By getting it right from the start, you avoid these headaches.
• Protect Your Reputation: How you treat your workers matters. If you’re found to be misclassifying contractors, it can hurt your reputation. This can make it harder to hire great people and build trust with clients and partners.

In short, making sure your contractors are classified correctly helps you avoid problems, save money, and keep your business on track. Our tool makes this process simple and straightforward.

How it works

Our classification tool combines smart technology with real human expertise to give you accurate, trustworthy results. Here’s what happens:

• Step 1: Questionnaire, AI Guided Conversation, or Auto Option

  We start by offering you three options to classify your workers:
  
  Questionnaire: A straightforward set of key questions about how the contractor works, their level of independence, how they’re paid, and more. The questions are tailored to fit the laws of the country where your contractor is based.
  Guided AI Conversation: For a more interactive experience, our AI guides you through a conversation to make the classification process easier and more personalized.
  Auto: Our most innovative and fastest option allows you to classify workers quickly by using a complete job description.

• Step 2: AI Analysis

  Once you complete the first step, our AI goes to work. It reviews your answers and looks for any signs that might suggest a misclassification. Our AI is trained on countless cases from different countries, so it’s quick to spot potential issues.

• Step 3: Human Expertise (Premium)

  After the AI does its job, our legal experts step in. They carefully review the AI’s findings and apply their knowledge to catch anything the AI might have missed. This way, you get a result that’s both technically accurate and practically sound.

• Step 4: Clear Report

  You’ll receive a clear, easy-to-understand report that tells you the contractor’s classification status, any risks involved, and what you need to do next. If the contractor isn’t classified correctly, we’ll also guide you on how to fix it according to local laws (Premium).

Free or Premium

Choosing the right assessment option is essential to ensure accurate contractor classification and compliance with local regulations. While the Free assessment provides a quick and convenient solution, the Premium assessment offers a more in-depth and reliable evaluation. Below is a comparison of the key features included in each option to help you make the best choice for your needs.

Feature	Free Assessment	Premium Assessment
Assessment Type	AI-Powered	AI + Human Expert Review
Speed	Instant Results	1-2 Business Days
Recommendations	Not Available	Expert Advice
Document Check	Not Included	Compliance Review
Contractor Questionnaire	Not Included	Combined Review
Results	No Guarantee	Guaranteed results
Report	Short Report	Full Report by Email
Support	No Support	Call with our experts