Key Criteria for Assessing Risky Relationships
Organizations working with self-employed individuals are evaluated based on several parameters. Here’s a checklist to help you understand what the FTS pays attention to:
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Duration and continuity of work.
If a self-employed individual has been working with one organization or individual entrepreneur (IE) on a long-term and continuous basis, this may raise suspicions with tax authorities. -
Frequency and amount of payments.
Regular payments of the same amount, resembling a monthly salary, are one of the key signs of risky relationships. -
Lack of other income sources.
If the self-employed individual has no other clients or sources of income, this may also indicate hidden employment relationships.
Why Does the Risk of Reclassification Arise?
If an individual who previously worked for an organization under an employment contract transitions to a civil contract (e.g., as a self-employed individual), tax authorities may see this as an attempt to evade tax obligations. In such cases, there is a risk of reclassifying the civil contract as an employment contract, which could lead to additional taxes, penalties, and possible fines.
How to Minimize Risks: A Playbook for Businesses
To avoid problems with tax authorities, follow this playbook:
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Diversify clients.
Ensure that the self-employed individual works not only with your organization but also with other clients. This reduces the risk of the relationship being classified as employment. -
Flexibility in payments.
Avoid fixed monthly payments that resemble a salary. Payments should be tied to specific results of the work. -
Proper documentation.
Clearly outline the terms of cooperation, deadlines, and payment procedures in the contract. This will help prove the civil-law nature of the relationship. -
Regular risk assessment.
Use specialized services to assess the risks of reclassification. For example, you can check your contracts with self-employed individuals for free using our service (link).
Create Your Own Services Without Programming on Botman.one
Want to automate the contract review process or create your own risk assessment service? This is easy to do on the low-code platform Botman.one. Without programming or advanced technical knowledge, you can:
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Develop expert systems for contract analysis;
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Create chatbots with buttons for Telegram or VKontakte to help your clients assess risks;
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Automate routine processes, such as calculating statutes of limitations or checking documents for compliance with legislation.
On the Botman.one platform, you can easily create a playbook for your employees or clients to help minimize risks and comply with all legal requirements.
Working with self-employed individuals requires careful attention and adherence to all legal norms. Using modern tools such as expert systems and automated services will help you avoid mistakes and reduce risks.
For more useful information on #LegalTech, business process automation, and chatbot creation, visit our Telegram channel (link). Subscribe to stay updated on the latest news and trends!
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