What does PrO do?
PrO provides a Business Validation process to minimize the risks to the client and the contractor of reclassification to employee status. By clarifying the working relationship and securing documentation prior to the commencement of the project, PrO can lessen the likelihood of future problems. The possibility of worker reclassification by the IRS or state authorities is an area of potential exposure for any company that uses IC’s. In the event of an audit, the client company may become liable for back employment taxes, penalties and interest; and the IC may lose his/her business deductions. The purpose of the validation process is to minimize this risk for both the client company and the contractor.
