If you want to do truly great work, you need a great team. This is something we can virtually all agree on. More and more companies are find that working with Independent Contractors is an increasingly powerful way to maintain a competitive edge. And ICs are not going anywhere. But it can be really challenging to maximize all that this workforce has to offer without risking expensive tax exposures. When partnering with an expert, you can bypass the drama and drive some awesome results. Keep reading to learn more! 

independent contractor compliance


This Minnesota-based international consumer goods manufacturer implemented Populus Group as their independent contractor compliance provider in 2016. We started with a list of 2,500 IC's and helped them mitigate the risk around this population. We helped identify and create visibility to who was active on their books, those that were integral and non-integral to their business and who was misclassified. We found, like with most companies that we partner with for Independent Contractor Services and indemnify against misclassification, that around 89% were not true Independent Contractors.

Why they reached out for help:

Late payments

The company's current policy was being managed internally by a few different departments. They found that they did not have the expertise internally to ensure that each department was doing the necessary things to ensure classification was correct and being upheld throughout the duration of project and services rendered.

  • This jeopardized compliance with governmental regulations
  • It provided a potential for tax implications and fines
  • Hiring managers did not have a standardized process to engage
  • Their current program lacked efficiencies and visibility

Our team discovered:

Months ahead of the internal transition announcement, Populus Group consultants worked with key stakeholders to define an independent contractor compliance program that best fit their working environment and incorporated best in class procedures.

Key insights included:

  • Project deadlines are just as important as mitigating risk. Although they knew their exposure to risk of misclassification was significant, the manufacturer feared making the transition to a new supplier would result in a disruption to business that they could not afford.
  • A lack of education and consistency created shared frustration. Managers and contractors were unsure of compliance standards and best practices for IC engagement. This meant they were unequipped for challenging conversations about compliance and screenings.

The results:

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