Frequently Asked Questions
What you need to know about working with Collabrus
How is Collabrus different from other companies offering professional payroll services and compliance programs?
While other companies offer some similar services, Collabrus is unique in combining all the services you need to effectively manage your professional, senior level contingent workforce. We offer a full range of Web-enabled time reporting & management tools, along with proprietary compliance services. We can also act as an Employer-of-Record for contingent workers who don’t meet the requirements to be valid independent contractors (ICs). We are also vendor neutral and are not tied to any one procurement technology vendor, so our best interests are always in alignment with our clients'. Our objective is to become your subject matter expert and program manager for your contingent workforce. We help our clients gain visibility and control, save money, mitigate risk and provide responsive service to your contract workforce.
If my consultants are incorporated, do I still need Collabrus?
Collabrus offers unique benefits aimed at servicing professional consultants, many of whom have incorporated their businesses. Incorporated businesses must adhere to regulatory specifications. If the proposed work and worker conform to regulatory law, Collabrus will help you with the administrative tasks related to contracting, payment and reporting.
Collabrus offers a unique pay and benefits program that is particularly attractive to senior level consultants when the project or interim work does not qualify for IC or Corp. to Corp. status. The program includes 401(k) matching, Flex spending, health and welfare benefits and much more.
See the Pay Programs section to learn more or call to speak to a Collabrus representative.
What is my risk in incorrectly classifying consultants?
There have been many past cases in which tax authorities have audited employers and found them to have incorrectly identified contingent workers as consultants rather than employees. As a result, these employers have been obligated to pay back-taxes plus penalties and interest, and they have been subject to back benefit claims by the workers. In some cases, these costs have added up to millions of dollars.
How can Collabrus help me reduce this risk?
As your alliance partner, Collabrus can assist you in managing your compliance risk. By using our Web-based compliance tool and staff of experts you can easily and accurately classify your consultants as 1099 contractors or W-2 employees. In addition, Collabrus can create and maintain compliance files that demonstrate your company’s awareness of and adherence to federal and state regulations, as well as provide an audit trail should consultants or your managers be unavailable to answer questions.
What is the cost of using Collabrus?
Our clients indicate that we’ve generated significant savings when compared with internally managing their contingent workforce, in addition to helping manage compliance risk, which could cost greatly. Collabrus customizes each relationship so that we can serve as a subject matter expert and true partner in managing the unique issues and needs surrounding the contingent workforce. Because each organization’s situation is different, contact us for a customized quote.
What benefits do employees receive through Collabrus’s Employer-of-Record program?
When you choose to use Collabrus as the Employer-of-Record, W-2 employees have access to a unique and extensive benefits program. It includes medical, dental, and vision insurance, a 401(k) plan, a Section 125 flexible spending plan, a Section 132 commuter benefit plan, and the option to continue their medical, dental, and vision coverage through COBRA when their engagement ends.
How easy is it to get started with Collabrus?
Collabrus offers Web-enabled services that require no software or other investment on your part. We will partner with you to develop a program that meets your organization’s specific needs. You can be up and running with Collabrus in a very short time. For our Employer-of-Record program, we are able to add new W-2 employees to the program within 24 to 48 hours.