Worker Classification Decision Tree

Decision Tree Outcomes Legend Decision Box: Represents the possible outcomes of a decision or analysis that took place in a step immediately preceding. Process Start Process End Denotes the process begin point for specified level. Denotes the process end point for specified level. Denotes process step. Represents a manual analysis/process that occurs outside of decision tree. Determinations and conclusions drawn from this process contribute to decision results within the specific branch of decision tree. Denotes a loop back to the top level decision tree. Employment Relationship Continuum Strong Evidence - Employee 1. 2. 3. 4. 5. 6. 7. 8. Requires Review Very Strong Evidence – Independent Contractor Strong Evidence – Independent Contractor Evidence – Independent Contractor Some Evidence - Independent Contractor Some Evidence – Employee Evidence – Employee Strong Evidence – Employee Very Strong Evidence – Employee Strong Evidence - Contractor Start 1.2 Does BU and the candidate perceive candidate to be an independent contractor? 1.1 International Candidate Identified Yes 1.3 Will associate receive pay for completion of a project/task or for time worked? Project 1.4 Does associate have potential of profit or loss in relation to project execution? 1.5 Does BU have direct control over how the project work is completed? Yes No 1.6 Very strong evidence of independent contractor status. No Yes 1.7 Very strong evidence of employeeemployer relationship. Time Worked 1.8 Will associate receive pay for completion of a project/ task or for time worked? 1.9 Strong evidence of independent contractor status. No Time Worked Yes Project 1.10 Strong evidence of employee-employer relationship. No 1.12 Can associate procure additional labor to complete the project or task without consultation or approval of BU? 1.11 Does associate have potential of profit or loss in relation to project execution? No Yes 1.14 Some evidence of employee-employer relationship. Requires addl review. Yes 1.15 Does BU have direct control over how the project work is completed? 1.16 Evidence of employeeemployer relationship. Requires additional review No 1.17 Does associate execute project with their own resources and tools. No Yes 1.18 Some evidence of independent contractor status. Requires additional review. No 1.19 Can associate procure additional labor to complete the project or task without consultation or approval of BU? Yes 1.13 Does associate execute project with their own resources and tools? Yes 1.20 Evidence of independent contractor status. Requires additional review. No High Level Employment Status – Decision Tool Recommendation Start 2.1 Very Strong or Strong evidence of employeeemployer relationship. 2.2 Associate should be treated as employee and should not be paid through AP. 2.3 Are there current Payroll/HR processes in place to facilitate hiring action? Yes 2.4 Use existing Payroll/HR processes to facilitate request. 2.5 Process End No 2.6 Will there be 20 or more associates hired for the engagement? Yes 2.7 Conduct cost/risk analysis comparing internal program with external vendor procurement. Country Specific Considerations · · · No · Recommendation 2.8 and select in-country vendor payroll, staffing, and HR solution. Process End Yes 2.9 Does the risk and expense associated with an internal program outweigh the risk and expense associated with vendor solution? · · · · · No · Tax Reporting Requirements Payroll Tax Requirements Requirements for Social Insurance, health benefits, etc Considerations for establishing business presence; Is brick and mortar location required? Expected length of engagement Regulatory and common practice assessment of expected labor relationships in country Currency and other remuneration requirements (i.e. cash payments, direct deposit regulations, paycheck delivery options) Does BU have the requisite in house expertise to execute the program. Availability of local in country talent to partner with domestic team Employment contract requirements Recommendation “Employee” Status Strong Evidence – Decision Tool 2.10 Utilize in country payroll requirements outlined in the country playbook along with consolatory services to initiate payroll program for country. 2.11 Payroll team begins processing payroll for employees. Process End Recommendation Recommendation Start 3.1 Strong or Very strong evidence of independent contractor status. 3.2 Associate should be treated as an independent contractor. 3.3 Review country playbook for employment contract information. 3.4 Are employment contracts required for independent contractors? 3.5 Associate should be paid through AP. No Process End Yes Recommendation 3.6 Use existing Payroll/HR processes to facilitate request. Yes 3.8 Review requirements of the employment contract. 3.7 Are there current processes in place to facilitate requirements of the employment contract? Process End Yes No No No Recommendation 3.11 Review and select incountry vendor payroll and staffing solutions. Process End 3.10 Are there regulatory requirements within the employment contract that are customarily associated with employment? (i.e. health insurance requirements, tax withholding, paid time off) 3.9 Will there be 20 or more associates hired for the engagement? Yes Recommendation 3.12 Conduct cost/risk analysis comparing internal program with external vendor procurement. 3.13 Process payments through AP while Payroll Team ensures employment contract terms are adhered to. Process End Country Specific Considerations · · · · Yes Independent Contractor Status (Strong Evidence) – Decision Tool 3.14 Does the risk and expense associated with an internal program outweigh the risk and expense associated with vendor solution? No 3.15 Use known requirements along with consolatory services to initiate payroll program for country. · · Tax Reporting Requirements Tax Withholding Requirements Requirements for Social Insurance, health benefits, etc Considerations for establishing business presence; is brick and mortar location required Paid time off Bonus payment requirements Recommendation Start 4.2 Examine employment/labor climate and culture of country. 4.1 Some Evidence or Evidence of employee-employer relationship. 4.3 Does the climate/ culture of the country favor employee advocacy? Yes 4.4 Treat associate as an employee. Proceed to Employee decision tool. No No Country Specific Considerations · · · · Employment/Labor regulatory climate Employee Centric vs Employer Centric Culture Expected length of engagement Common practice assessment of expected labor relationships in country 4.5 Can BU reduce risks by introducing and increasing independent contractor attributes into the agreement? (i.e. pay by the project, reduce controls over how work is done, etc) Yes 4.6 Process End Proceed to Employment Status decision tool. “Employee” Status (Some Evidence) – Decision Tool 5.1 Some Evidence or Evidence of independent contractor status. Start Independent Contractor Status (Some Evidence) – Decision Tool Recommendation Yes 5.2 Can BU reduce risks by introducing and increasing independent contractor attributes into the agreement? (i.e. pay by the project, reduce controls over how work is done, etc) 5.4 Does the climate/ culture of the country favor employee advocacy? 5.3 Examine employment/ labor climate and culture of country. No No Country Specific Considerations · · Yes 5.7 Examine employment/labor climate and culture of country. · · Employment/Labor regulatory climate Employee Centric vs Employer Centric Culture Expected length of engagement Common practice assessment of expected labor relationships in country 5.8 Does the climate/ culture of the country favor employee advocacy? Yes Proceed to Employment Status decision tool. 5.9 Process End No Country Specific Considerations · · · · Employment/Labor regulatory climate Employee Centric vs Employer Centric Culture Expected length of engagement Common practice assessment of expected labor relationships in country 5.10 Strong Evidence of independent contract status. Proceed to Independent contractor decision tool. 5.11 Process End 5.5 Treat associate as an employee. Proceed to Employee decision tool. 5.6 Requires external consultation and review.