2016 promises to be a year that is impacted by regulatory requirements and emerging technologies; specifically affecting the contingent workforce. These latest guidelines should not come as a surprise to anyone – they have been heavily touted. However, organizations need to take notice and implement processes to address them.
Below are three reasons why 2016 will be a very important year in contingent labor:
- Affordable Care Act (ACA) 2.0: Phase 2 of the ACA took effect on 1/1/16. As a result, there is a new set of cost/compliance considerations that require staffing suppliers and SOW/Project firms with 50-99 employees to address.
- Mobile Disruption and Contingent Labor: By the end of 2016, over 90% of all internet connections will be on a mobile device. Contingent labor users are increasingly demanding mobile apps for execution/management of their contingent workforce programs. Mobile apps will be the driving force behind user adoption, and those companies who implement a mobile first philosophy will be able to capitalize on this trend while realizing a competitive advantage.
- 1099 Contractor Compliance: This is the year of enforcement. Every year there are new bills being proposed, threats of increased audit notices, and legal experts writing white papers urging action to be 1099 compliant. In 2015, we saw more legal activity and laws being passed; and large, prominent corporations’ practices being challenged via suit. We are predicting that 2016 will actually be a year where the threats become reality.
There are a number of services and technology solutions that can help support organizations in the light of these regulatory and changing environments. Here are three key recommendations that executives can take to address ACA 2.0 and 1099 contractor compliance along with the shift to mobile technology.
- Identify and partner with a provider that has an in-depth understanding of not only the ACA 2.0, but also, all of the worker classification guidelines including the Fair Labor and Standards Act (FLSA) and the IRS’ Categories of Evidence. Organizations need to rely on the expertise and guidance of their Managed Services Provider (MSP) to know what is required when it comes to classifying exempt and non-exempt professionals.
- Leverage a Vendor Management System (VMS) with a comprehensive mobile platform; specifically a technology solution that can be executed from a smart phone, tablet, or wearable. Today, more than ever, we live in a mobile world where we are always on. Organizations require solutions that workers can easily use and access and ultimately, make the company and contingent workforce more effective.
- Collaborate with a provider that has a rich history in architecting 1099 compliance management (history matters with the IRS). Companies that have completed hundreds of thousands of 1099 screenings without any being overturned are the type of providers human resources and procurement professionals need to partner with. They should also look for providers who employ former IRS lead auditors because at the end of the day, it is all about protecting a company’s reputation, workforce, and bottom line.
With the complexity of today’s regulatory and technology driven landscape, organizations constantly need to stay current with the latest rulings and contingent labor requirements. Incorporate these three practices into your program to ensure you are successfully prepared to address the ACA 2.0, workforce mobility, and 1099 contractor compliance.
To consult with a PRO representative, please call us at 1-800-291-1099 or email us at email@example.com.
Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of PRO Unlimited and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.