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Background
Our client had a global population of employed and self-employed independent and corp. to corp. contractors that were being managed by a USA payroll and compliance company.
Challenge
This company was using partners in various countries where they had no international presence. Because of this, their contractors were having problems with untimely payroll and inaccurate accrual of paid time off.
This company also felt they were being charged an increased bill rate with no reporting for employed contractors. Direct payments were being made to contractors as freelance or independent, with no compliance verification through the internal accounts payable department. They had limited or no knowledge on global employment and independent contractor standards, and the laws in the 40+ countries they were using independent contractors.
They required a global contractor vendor management program with online technology, vetting and background screening capabilities, to provide worker classification validation of existing independent, corp. to corp., limited liability companies and sole trader contractors.
Solution
When partnering with CXC, we provided them with a USA-based Client Care Program Manager, who helped understand the global population of contractors, how they were classified, who was acting as the legal employer of record and to identify risk in self-employed and Statement of Work (SOW) contractor engagements.
CXC transitioned global employed contractors to CXC management and payroll, resulting in a 12% decrease in contractor fees. Single invoices by currency eliminated slow onboarding and time to resolve queries.
We also implemented CXC Comply – our contractor management vetting and validation platform – to ensure proper classification of global self-employed contractors and conduct compliant background screenings allowable by local in-country law.
Key services CXC provided to the energy and finance company include:
Employed Contractor
- Single dedicated USA Client Care Program Manager.
- Global in-country office network in over 30 countries with local team members.
- Contractor employment contracts in English and local country language.
- 100% transparency and full management in countries where partners were required.
- Consolidated invoices by currency.
- Global reporting consolidation.
- Global professional indemnity insurance of $9M USD equivalent.
- Global background checks.
Self-employed Contractors
- Provided contractor vetting to ensure that the worker was properly classified as independent contractor, corp. to corp., limited liability company or sole trader.
- Ensured all contractors have right-to-work standards in each country.
- Single invoice for all services in USD.
- Should audit occur from a tax or labour department globally in-country, CXC processes all responses and audit defence.
SOW Project
- Enabled the client to have a centrally managed group of SOW contractors with increased visibly into spend and project milestones to both contingent workforce and procurement departments.
- Local in-country CXC office to validate business set up and ensure local compliance for global SOW contracts.
Results
The partnership with CXC enables the international energy and finance company an increased employed worker experience, reduction in cost to manage the program and ensures full transparency and visibility into their global contingent workforce.
Self-employed misclassification risks are avoided by using CXC Comply, ensuring that all contractors, regardless of classification, are properly classified and fully compliant with the client’s background screening requirements allowed by local in-country laws. CXC provides full workforce indemnification, prepares and holds audit defence files and carries excess liability insurance.
CXC can help you with a compliant, global engagement solution for all contractor types. Contact us today.
