Due Diligence and Ongoing Monitoring

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  • 1.  1099 Contractor

    Posted 10-02-2023 06:06 AM

    We are hiring a temporary backfill for an HR employee out on maternity leave.  He has an LLC but his license lapsed. What due diligence should we perform in this instance since technically he doesn't have an active business license?  Or should we bring him in under another temp agency that we've already onboarded and assessed?



  • 2.  RE: 1099 Contractor

    Posted 10-10-2023 03:28 PM

    Hi there,

    I think the best plan of action here would be to bring him in under an agency. The primary concerns with his LLC license lapsing would be in regard to taxes. If he doesn't have an active business license, then bringing him in under an agency would ensure that they are doing all necessary background checks and working through his W-2, and his paychecks. Keep in mind that most agencies will charge you a fee, or a portion of the contractor's hourly rate. This can mean less money for the contractor or an increase in your budgeted rate to pay him according to any agreements you may have made.

    These are my thoughts, but I would love to hear from other members.