Count on AllWork to classify freelancers quickly and easily
without any headaches or penalties
Simplify worker classification and streamline onboarding with AllWork. We handle 1099 and W-2 classification and ensure legal compliance. Enjoy fast, simple tools for management, payments, and more, leaving the risk and hassle behind.
Why customers choose us
Employees Vs. Independent Contractors
The IRS provides guidelines to help determine when a worker should be classified as an employee or an independent contractor. We've outlined the main points in the chart below.
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FAQ
Classifying full-time employees is straightforward: They’re W-2 employees who need taxes withheld and are entitled to certain benefits. Classifying freelancers, on the other hand, can be messy – and misclassification can cause huge problems for your business. If you end up misclassifying a worker, you could face penalties and fines. These may include:
- A $50 fine for each Form W-2 you failed to file
- A penalty of up to 3% of the wages, plus up to 40% of the FICA taxes that were not withheld
- Up to 100% of the matching FICA taxes that should have been paid
If the IRS determines that a company was knowingly trying to skirt the law, the penalties could be even steeper. Fines from the U.S. Department of Labor, IRS, and state agencies can total millions of dollars. Companies can be held responsible for paying back taxes and interest on employees’ wages as well as taxes that weren’t withheld.
On top of the very expensive government penalties for misclassifying freelancers, your company could also face lawsuits from the freelancers themselves. Notable lawsuits have been in the news lately, including an $8.5 million settlement against Lime Scooters. A California court ruled that Lime misclassified certain workers as independent contractors. As a result, Lime violated labor code regarding the payment of minimum wage, reimbursement for necessary business expenditures, and the provision of accurate wage statements.
In California, workers must pass the “ABC test” in order to be considered a 1099 independent contractor:
- The worker is free from the control and direction of the business in connection with the performance of the work.
- The worker performs work that is outside the usual course of the hiring entity’s business.
- The worker is an independently established trade, occupation or business of the same nature as that involved in the work performed.
No, AllWork is not a staffing agency. You bring your own talent, and we’ll do the rest. That means you get to choose the right individuals to work for your business, and you don’t need to pay expensive staffing agency premiums for services you really don’t need. Before AllWork, big and small brands had no technology to manage critical parts of their business. Now they can cut the cord with costly temp and staffing agency fees, putting those dollars back into their bottom line.
Here’s what we take off your plate:
- Classification of talent as W-2 or 1099 workers
- All basic payroll and HR responsibilities
- Administrative tasks related to onboarding, such as i9 verification, W-2 paperwork, direct deposits, and work visa applications
- Health benefits for freelancers working an average of 30 hours per week consecutively for 6 months
- Ensuring compliance with all federal, state, and local labor laws and regulations
- Training managers and field talent on how to use our platform and providing them with ongoing customer support
Yes. Our mobile app helps managers do their job more efficiently by significantly reducing the amount of time they spend on creating and updating schedules for their teams. They can:
- Send new shift requests right from their phone, creating a truly on-demand scheduling experience
- Quickly edit schedules and update shift requests for last-minute adjustments
- Review and approve weekly timesheets with just the push of a button
- Use our integrated chat to communicate with their entire team
Our mobile app changes the game for managers who are overseeing a remote team by helping to improve productivity and save time on scheduling while greatly improving communication and collaboration between them and their team.
You can use our platform for all scheduling and time tracking tasks related to flexible workers, while continuing to use your preferred employee scheduling software for full-time staff. Those traditional solutions are built for full-time employees, not flexible workers who receive payments on an as-needed basis. Freelancers and other non-traditional contributors require a completely different approach to management, payroll, benefits, compliance, and more. As today’s businesses continue to lean on outside talent more than ever before, they need scheduling and HR tools designed specifically for flexible workers.
Our pricing includes one flat rate based on a percentage of wages and a monthly software fee per active user. You’re only charged if you schedule talent and they work a shift, triggering a payroll action. You aren’t charged if you terminate talent, if talent departs, or if you don’t schedule freelancers during slow seasons. For more details and to receive a proposal, contact us at info@allworknow.com.
Yes. For all of your talent classified as W-2 employees, AllWork would be listed as the employer of record. Note that this is different from a professional employer organization, or PEO.
Managers and talent access AllWork using our mobile apps and desktop platform. The free mobile app is available on iOS and Android. Managers can schedule shifts, communicate with talent, manage budgets, approve timesheets and expenses, and more. Field talent can accept bookings, submit timesheets, receive notifications, upload images, and have their attendance accurately confirmed by GPS.
Effective management of a flexible workforce requires a multitude of core responsibilities and functions. These may include:
- Scheduling flexible workers based on their availability and your organization’s needs
- Recording and monitoring attendance
- Reviewing and approving timesheets
- Sharing assets like training materials, sales collateral, task lists, and display photos with workers at various retail locations
- Enabling fast, easy communication between workers, managers, and other team members
- Creating, adjusting, and tracking budgets to control and optimize spend
- Generating reports to understand and optimize worker productivity, spending, ROI, and more
AllWork equips your entire team with easy-to-use, mobile-friendly tools for completing all of these unavoidable management tasks from anywhere.
- Managers can use our mobile app to send new shift requests right from their phone, make last-minute adjustments, review and approve weekly timesheets with just the push of a button, and disseminate information to teams in the field.
- Our talent app uses GPS verification to ensure that workers are in the right place at the right time, saving them the step of manually filling out timesheets.
- Our budgeting platform replaces hours of spreadsheet wrangling with one end-to-end planning system that adjusts in real time, giving CFOs and finance directors visibility into budgets and spending across all managers and flexible workers.
- Our suite of in-depth reports captures all metrics related to freelancer productivity and talent spend, empowering your business to optimize on a continual basis.
We’ve designed one platform that has everything brands need to handle payroll, benefits, compliance, and HR. We offer onboarding and training, scheduling, budgeting and planning, reporting and analytics, communication and collaboration, and more. This means you don’t have to toggle between (and pay for) multiple apps and services. Our all-in-one approach helps brands manage their talent, measure results, and improve ROI on their labor spend.
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