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22 January 2019

TAGGED IN: News, USA, Legal & Compliance, Misclassification

PGC and SFS Compliance Partnership

This month we’re pleased to announce our partnership with SFS Compliance Solutions (CS) on an independent contractor classification solution. This move combines the experience and expertise of both companies to create a comprehensive talent management solution.

As a workforce management platform, we employ workers on our client’s behalf. We engage directly with a workforce and take on the responsibility for employing those workers – managing payroll, taxes, insurances, benefits, contracts, compliance and day-to-day HR issues. Our in-house legal team helps to navigate the complex U.S. employment landscape, whilst our custom technology makes sure that back-office processes run like clockwork.

To complement our services, we have decided to team up with Compliance Solutions direct sourcing program model. As a conflict-free managed services firm, their broad-based solution supports businesses in screening and engaging independent contractors in a way that protects both parties. They are compliance-focused, and technology driven, working directly with businesses to help them meet their external talent objectives and to properly classify and quickly onboard workers – ensuring that IC engagements are safe from the start.

IC misclassification has been brought into the spotlight in recent years due to a material shift in the workforce toward more freelance and contingent workers and by some high-profile court decisions and regulatory tightening at the state and federal level. This increasing issue has seen many businesses suffer losses in the way of penalties and back-payment of taxes and benefits – further highlighting the importance of properly classifying workers. By collaborating in this way, PGC and CS are able to fully serve the direct sourcing and administrative needs of mid- to large-size companies. Additionally, the new alliance serves as a single back office solution for staffing firms, enabling them to confidently recruit and place Independent Contractors and W2 contractors across the US.

PGC’s Managing Director, David Bagheri, is looking forward to working with CS to offer a full-service solution to clients: ‘We’re excited to partner with CS on this as we feel that their innovative and consultative approach to working directly with IC’s is a great compliment to PGC’s specialty in providing a seamless solution in managing W2 employees on client’s behalf. Both companies are powered by technology, meaning businesses looking for a compliant partnership for their workforce management will have an efficient and accurate offering as well as a great user experience for both clients and workers. Whether an engagement is best suited to an IC or W2 engagement, through our partnership with CS, we can offer our clients the full solution they need.’

Also commenting on the announcement - Ken Hernandez, Co-founder and CEO of SFS Compliance Solutions: ‘Our focus at Compliance Solutions has always been on supporting clients with their engagement of independent contractors. But our clients also require payrolling services to support freelancers who have to be or prefer to be engaged as W2 contractors. PGC is the perfect match for Compliance Solutions because they focus solely on payrolling, HR and benefits for W2 contractors. Together, we deliver a cohesive and seamless solution to fully align with our clients’ direct sourcing and freelancer talent strategies.’

Michael Matherly, Co-founder and COO of SFS Compliance Solutions noted some of the initiatives behind the decision to partner with PGC: Our commitment to a conflict-free business model is what lead to the partnership with PGC. We’ve always believed that joint, yet competing services offered by a single provider present a conflict to clients. So when we established our IC compliance and agent of record services model in 2015, we intentionally avoided becoming an employer of record. Our strategic objective has always been to identify and partner with a payrolling firm that specializes in employer of record services, only. PGC is a great find for us because now we can jointly take on clients, each of us deliver the service we are experts at and avoid the conflict while still providing a full-service solution.’

 

If you’d like to discuss this further or to learn about Precision, you can contact us via our contact page or email info@pgcgroup.com.

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