CXC Comply

Global contractor vetting and compliance platform

Are you managing and paying contingent workers, but can’t navigate the complexity of global workforce compliance?

Talent Sourcing Trends

Talent acquisition has gone through quite a transformation in the last few years. Organizations have moved beyond a predominant focus on traditional recruitment and the use of full time employees.

Nowadays they look to accessing people with the right capabilities and they’re using new ways to do that. There’s more focus on internal mobility, the extended or hybrid workforce, and new technologies to facilitate their access to talent.

The use of independent and self-employed contractors through multiple sourcing channels and talent cloud marketplaces has become the norm.

In terms of access to talent, the world really is your oyster.  Now you can hire anyone, anywhere and with CXC’s proprietary contractor vetting platform CXC Comply, we’ll make sure they’re hired the right way!

CXC takes care of the complex classification issues involved with engaging contractors. We enable companies, through our contractor vetting platform, to engage talent quickly and compliantly, wherever they are!

How does it work?

CXC Comply ensures your independent and corp.-to-corp. contractors are compliantly classified at the time of vetting and throughout the term of the project. The technology is a salesforce-based service delivery platform that enables contractor vetting and validation, ensuring compliance in minutes and reporting with a comprehensive audit file for each contractor.

You can purchase compliance checks up front for as many workers as you need and CXC takes care of the rest.

Why is contractor vetting important?

With greater access to data sharing between countries, governments have started to crack down on how contractors are being paid, to ensure the necessary taxes are being withheld and accounted for. Part of the contractor vetting process ensures the workers are correctly classified and reduces risk to an organization.  Misclassification of workers can be costly in terms of potential fines.

Without a compliance firewall to protect your business, detailed knowledge of local employment, tax and banking legislation, many of these engagements are potentially at risk

In the U.S. alone, every state has different legislation and tax requirements. This can be tricky to navigate.

Globally, every country also has its own employment law and regulations.

Staying up to date on all these laws is a challenge and can be very time consuming.

In 2019, with the use of CXC Comply, we classified over 2,500 contractors. Since then we’ve further developed the platform to provide global background investigations and comprehensive right-to-work documentation.

Below are a some of the recently enacted laws and government actions to prevent contractor misclassification.

AUSTRALIA — The Fair Work Ombudsman Act, 2019 “crackdown” levies penalties for “sham” contracting. Mitigating factors, control, super-Annuation, time reporting, tax and risk.

BRAZIL — Independent Contractors “Pessoa Juridica” (PJ’s) should be used on a project basis only. Contractor must register for tax and no exclusivity in work or agreements

CANADA — Independent contractors assessment on control, economic reality, entrepreneur assessment required and held for documentation. Self-Employment set up of Sole Proprietorship, Partnership or Corporation with proper government forms and insurance.

CHINA — China’s Labor Contract Law, employment relationship exists regardless of the party’s agreement if the individual is subject to any of the company’s internal rules and regulations.

FRANCE — Independent Contractors must registered on the Commercial and Companies Registry or the Commercial Agents Register.

GERMANY — In differentiating between independent contractors and employees, the government and courts look at the parties’ agreement and level of control, and if the contractor can freely determine how, when and where to perform its services.

INDIA — Independent contractor agreements must undergo a formal stamping process in order to be admissible as evidence in court in India.

JAPAN — Contractor relationships may not be exclusive or subject to any restrictive covenants. Contractors should not be subject to a company’s internal rules or regulations.

KOREA — The Supreme Court of Korea has a list of 10 factors that are relevant to whether a contractor is improperly classified.

NETHERLANDS — To be treated as an independent contractor for tax purposes, any individual contractor needs first to obtain an exemption from the Netherlands tax authorities.

UNITED KINGDOM — IR35 targets contractual workers who operate through an intermediary, usually a limited company, to offer and provide services to an end business.

UNITED STATES — 1099 independent contractors must be validated as well as the company’s operations to determine the level of control the contractor has over the project. Contractors right to accept other work and if any full-time company employees are doing similar roles.

How can CXC help?

Think of CXC as your compliance guardian, helping you ensure that wherever you are engaging contractors, in every situation, that it is compliant, thorough, accurate and validated.

Speed up time-to-fill and lower your costs, with fully vetted and validated workers and increased access to talent.

It’s as easy as a click of a button. Contractor vetting and validation in minutes and reporting with a comprehensive audit file for each contractor.

Get in touch with a CXC specialist and ask for a demo of CXC comply.

Worker Classification

Are you vulnerable to contractor misclassification or deemed employment risks? Mitigate risk to your organisation by ensuring your contingent workforce adheres to local classification guidelines for taxation purposes.

Right to Work

Have you conducted right to work checks? CXC Comply verifies contingent workers’ right to work and visa status to ensure the relationship is fully compliant.

Background screening

Have you verified your candidate’s background? Investigate contingent worker’s employment history, criminal record, credit history and more though CXC Comply.