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The Challenge
This technology company faced a significant challenge concerning its extensive network of contract workers situated around the globe, a majority of whom were directly engaged and identified by the company.
Within the scope of UK legislation, the company urgently needed to accurately classify all Independent Contractors for IR35 compliance. This entailed correctly determining the employment status of over 150 Independent Contractors.
Solution
To address this challenge, CXC assembled a dedicated team for project delivery and IT development. Their task was to construct and configure a dedicated IR35 classification module tailored for the company’s needs. This module was seamlessly integrated into CXC’s Independent Contractor Classification Platform – CXC Comply.
The collaboration between CXC and the company resulted in the successful implementation and launch of the IR35 module within a 12-week sprint. This endeavour involved close coordination with stakeholders from various departments within the company, including Finance, Legal, Technology, and Operations. In February 2021, the platform went live, with CXC’s Support and Account Team Members equipped with company-approved tools and equipment.
To ensure the successful uptake of the new system, CXC devised a comprehensive plan encompassing communication, training, and escalation procedures for all relevant stakeholders within the company. This was further bolstered by regular training sessions conducted by CXC on their platform, which facilitated a smooth transition for company personnel.
Results
- CXC’s solution empowered the technology company with a centralised overview of their contract workforce, ensuring accurate classification. This, in turn, mitigated potential risks such as penalties, fines and legal disputes.
- Starting with 150 workers to classify, the project grew to, and resulted in, the accurate classification of over 250 UK workers for IR35 purposes within the company.
- Through this collaboration, a strong and productive relationship was cultivated between CXC and the company. This rapport paved the way for the expansion of the program to an additional 18 countries globally, including in the regions of Europe, The Middle East, Africa, Asia, and Latin America.
- The success of the program hinged on the precise classification of workers. To facilitate this, CXC worked closely with Google’s Employment Tax Team, to develop bespoke independent contractor classification frameworks for each respective country and region that were in scope of the service. The frameworks included a comprehensive list of questions which had been reviewed, weighted, and signed off by both Google’s Employment Tax Team and Legal Team. To support the classification assessments, CXC also conducted a compliance vetting process, which required the independent contractor to provide evidence of their right to work within the stated country and provide respective company documents to support their stated engagement type. With both processes running simultaneously, Google were able to effectively engage independent contractors, whilst mitigating the associated risks. These tests played a crucial role in identifying any instances of misclassified employees.
Reach out today to explore how CXC Comply can provide your organisation comprehensive oversight and control over your contractor workforce.
