Mauve’s Independent Contractor Services: A tour

Independent contractors are workers who provide paid services, but are not classified as employees. So, they’re not entitled to the same benefits as a full-time employee, such as sick leave, annual leave, and minimum wage. As a result, some employers will deliberately misclassify their employees as independent contractors in order to avoid paying taxes and benefits.

Employers can also misclassify their workers accidentally, due to limited or misunderstanding of relevant legislation. However, regardless of intention, misclassification can mean that the worker is unprotected, unsupported, and/or underpaid. If discovered by authorities, this practice may lead to hefty fines, legal proceedings, revocation of the business’s sponsorship licences, and the subsequent loss of the worker if their visa is cancelled as a consequence. That’s why it’s important to ensure that your Employer of Record is above board and totally compliant when hiring and maintaining your workforce overseas.

At Mauve Group, we provide a suite of Independent Contractor Solutions to support independent contractors, self-employed workers, and freelancers with handling overseas contracts. These services can be availed of by independent contractors, recruitment agencies sourcing independent contractors for clients, or by clients wishing to temporarily employ professionals for a particular project.

Take a tour of our Independent Contractor Solutions and discover why Mauve Group is the right choice for you – whether you’re an independent contractor yourself, or a business seeking to hire a professional.

Agent of record

Engaging independent contractors or freelancers poses a range of compliance risks. Chief among them is the misclassification of employees as independent contractors, which can result in financial and other penalties.

As part of our Independent Contractor Solutions, we offer an Agent of Record (AoR) Evaluation designed to negate the risks of misclassification. The AoR Evaluation can be summarised in three steps:

• Explains the risks of misclassifying independent contractors and the potential penalties in the particular jurisdictions.
• Highlights the legal differences between an independent contractor and an employee in the particular jurisdiction.
• Evaluates the job description and core activities of the company, to determine if the position is suitable for an independent contractor.

Independent contractor verification

Mauve Group will carry out a check on the status of the worker, with the relevant authorities to confirm they’re compliantly registered in their home country as an independent contractor. Clients can then compliantly fill temporary positions in response to urgent business needs.

Advisory services

In certain jurisdictions, Mauve Group can provide advisory services, supporting independent contractors with registering as self-employed locally. This ensures the independent contractor is compliantly positioned to carry out self-employed contract services in-country.

Independent contractor tax and SS payments

Mauve Group can provide administrative support to independent contractors, by calculating tax and social security contributions on their contract income and paying to the relevant authorities on their behalf – if permissible in that jurisdiction.

What are the benefits of Independent Contractor Solutions?

Whether for short, long, or variable fixed-term assignments dependent on your needs and local regulations, these solutions provide all parties with peace of mind of compliance, efficient administration, and expert in-country support.

Client partnerships built with your expansion plans in mind

With an average contract length of 5 years, Mauve has a client retention rate of 98%. Our people-first approach to global mobility is one of the reasons our client partners choose to stay with us.

Global reach

Our global payroll solution is available in 150+ countries worldwide, with fully in-house legal, HR and global mobility experts in 80 strategic locations.

Reduced fees

Mauve’s long-standing relationship with our global FX partner means overseas transfer fees and bank charges are reduced by as much as 65%.

Unmatched global response times

With experts on the ground in over 150 countries across 6 continents, our global network offers unmatched response times wherever you or your distributed teams are based.

For an in-depth discussion about our Independent Contractor Solutions, and how Mauve Group can support your international expansion, contact us and one of our global mobility experts will get back to you as soon as possible.