In 2016, we reclassified all of our 1099 independent contractors to W-2 variable hour employees and became the most compliant staffing agency in the experiential marketing/event staffing industry. We don’t just book staff – we employ talent!
Up until this point, our company, and the staffing industry as a whole, only hired talent as independent contractors. This was a pioneering move, as we were among the first experiential staffing agency to make the switch to a 100% W-2 model!
We are the most compliant event staffing agency! We meet all worker’s compensation, liability insurance and compliance regulations.
Security. The use of 1099 contractors by any agency carries with it an increased risk of worker misclassification liability. Misclassification of independent contractors, who the government views as employees, can result in substantial liability and penalties including back taxes, overtime pay, workers compensation, employee health benefits and more.
Peace of mind our clients. In the case of employee misclassification, agencies and brands that hire agencies that use 1099 independent contractors can be named as “co-employers” in audits. As a co-employer, these agencies and brands become responsible for associated fees and fines.
Talent performance and employment benefits. Under a W-2 model, we pay a portion of our talents’ taxes for them. For example, in the case of social security and Medicare payroll taxes, employees and employers split the cost, while an independent contractor (1099 worker) is seen as both the employer and the employee, so he or she must pay the entire 15.3% as “self-employment tax”. These benefits have led to a heightened level of motivation and talent loyalty, which helps us ensure that the ‘right people’ are placed for each event.
As an industry-leader in event staffing, we are proud to have forged this new path in our industry, and will continue to create new standards that benefit both our clients and our talent. In hiring our talent as W-2 variable hour employees we became the first, and remains one of the only, staffing agencies that can say that we don’t just book staff- we employ talent!
For more information on the benefits of W-2 hiring, please contact our sales team!