International Publishing Company

International publishing company successfully reduces independent contractor risks and costs while improving contract worker allegiance through Headway’s Employer of Record (EOR) program.

Outcome in Brief

An international publishing company was utilizing a large number of contract workers, freelancers and independent contractors. Many of the workers rotate in and out of projects as needed and the company would simply hire most of them on 1099 basis as an Independent Contractor (IC). However, being concerned about the stepped up scrutiny of worker misclassification, the company engaged Headway’s Employer of Record (EOR) solution to drive compliance while improving contract worker loyalty through a more robust engagement platform with this worker universe.

Challenge

• Up to 1800 independent contractors were paid through this publishing company’s accounts payable (A/P) department.
• During a state audit they discovered they were not in compliance with regulations regarding disposition of many of these independent contractors.
• Their current staffing company had payrolling capabilities only in NY State, yet the publishing company had payrolling needs through the entire US. Headway was called in to help due to its Employer of Record experience and capabilities.

Results

Within one month of the initial meeting with the publishing company, Headway managed meetings and conference calls at their sites along the eastern seaboard to begin the implementation process. Within 2 months Headway was fully up and running with all the sites, and Headway had processed up to 500 employees through Headway’s payroll system as W2 employees. The client did not have to process those 500 ICs’ invoices through their A/P department, only the master invoices. Headway was also able to provide a reporting system that allowed the client to review head-count, dollars and projects status on a year-to-date basis.

Solution

By utilizing an electronic online time entry system and an established EOR process, Headway was able to save the company money as it provided an approval process of each contractor’s time work that was never previously audited. The invoices were previously sent to the A/P department for payment.

The client was concerned about the possibility of losing some of their valued ICs who would not be interested in working as W2 employees. This concern was eliminated as there was 100% participation for their transitioned IC workforce which complied with the new Headway process.

Headway’s EOR program not only reduced risk and internal costs, but also improved contractor visibility and freelancer allegiance toward the company.