Home > workers compensation compliance > Attestation Fiduciary Compliance Programming is the Future

Attestation Fiduciary Compliance Programming is the Future

As more payroll and accounting firms are forced to buy errors and omissions insurance, why don’t they spend this money on integrated compliance programs that attest to the accuracy of their work? GAAP does this for the Feds. When are those folks going to make such standards available on the State level?

One reason the Department of Labor loves to conduct 1099 audits is because that data is controlled by the State legislative reporting guidelines. The criteria is specific as to how an employer can hire an independent contractor and it varies in each State.

Instead of worrying about getting sued by your client, why not use attestation compliance programs available and stop buying insurance policies? Attestation by the accounting and payroll industries to validate independent contractors needs to be a fiduciary responsibility just like the GAAP.

When the status of a contractor you hire becomes questionable, the accounting folks have to account for the time. If you show the contact dollars, they will be subject to an ‘average hourly wage’ estimated premium and penalties. If you have the hours and days the contractor worked, the auditor can only charge premiums at that rate.

All of this is explained in our compliance software CONC manual that triggers everything you need to ensure your employers. For due diligence, you have to have this information on record before hiring:

  • Contractor business name
  • State ID Business Number
  • Workers’ Compensation Account Number or Exemption Certificate
  • Unemployment Insurance Account or Exemption Certificate
  • Federal Employer Identification Number
  • Social Security Number
  • Contract start date
  • Contract end date
  • Total contract amount
  • Total labor amount
  • Sales tax registration certificate/exemption
  • Type of labor: bid, piecework,hourly, salary, commission
  • Rate of Pay
  • Bonus
  • Reimbursements

 

Let us know if you would like a DEMO of he various industry programs to keep you in compliance. They can be integrated into what accounting software you have because they are on the cloud.

 

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