The Smart Way to Prevent Worker Misclassification with EOR Payroll

Companies are depending increasingly on freelancers, contractors, and remote workers as the modern workforce changes. Worker misclassification is a major disadvantage of this flexible labor model, although certain advantages exist . Legal penalties, financial losses, and damage to image can follow from misclassifying independent contractors as employees. Here EOR Payroll comes in handy as a creative way to keep compliance intact and control risks. Understanding Worker Misclassification Worker misclassification is when a business misclassifies employees as independent contractors. This may occur because of a lack of familiarity with labor laws, complicated hiring procedures, or cost-cutting measures. Misclassification, though, can lead to significant fines, back pay, tax burdens, and even litigation. Governments across the globe are cracking down on misclassification, and compliance is more important than ever before. Firms that incorrectly classify workers can b...