Worker Classification Overview
Catalant offers compliance services to clients engaging with experts through Catalant’s Expert Marketplace. A client’s compliance services package includes either (1) a background check, which may include a drug screening, or (2) a worker classification assessment followed by a background check. Read on to learn more about the worker classification assessment. For more information about background checks, please see Undergoing Background Checks & Drug Screening.
A worker classification assessment determines whether a worker should be classified as an independent contractor or an employee.
For clients that require worker classification assessments, the Catalant compliance team will perform the assessment on each project once the client accepts an expert’s proposal.
A worker classification assessment is not a black-and-white test; it depends on the laws of the location where the work will be completed and the nature of the project. The Catalant compliance team will review the project details on the platform as well as additional information provided by client and the expert (e.g., via email, phone or questionnaire). For more information, please see Worker Classification Assessments: Expert Documents
Possible Outcomes of a Worker Classification Assessment
Once the worker classification assessment for a project is complete, the compliance team will let the client and expert know the outcome of the assessment. There are two possible outcomes: the expert is engaged as either an independent contractor or an employee for the project.
- If the expert is an independent contractor →the expert and the client will move onto next steps, which may be a background check (if the client requires it) or contracting for the project.
- If the expert is an employee → the compliance team will introduce the expert to one of our compliance partners to serve as the expert’s employer of record (or EOR).
Catalant’s third-party compliance partners act as the EOR when an expert is engaged as an employee for a project. As the EOR, the compliance partner will handle all employer responsibilities for the expert’s engagement, such as timekeeping, payroll, benefits and background checks. The expert will be asked to provide documentation necessary for onboarding and enter into an employment agreement with the compliance partner.
Experts classified as independent contractors will be paid via the Catalant platform, where they will be asked to establish a Payoneer account in order to receive payments. For experts who are employed by a Compliance Partner, the Compliance Partner will provide direct deposit, payroll schedules, and any other payroll information that the expert requires.
If you have any questions at all about this process, please don’t hesitate to reach out to the Catalant Compliance Team at firstname.lastname@example.org.