CONSULTANT “EMPLOYMENT STATUS” CHANGE REQUEST (For Members Only)

PURPOSE

From time to time, consultants may inquire if they can switch their employment type (for example, from an

employee [Term/W2] to an independent contractor [INC/LLC/Sole Prop]). This policy will provide you with the

information about when these employment type change requests can be made, and when they will be approved

by TEEMA HQ.

BACKGROUND

As we grow, we become subject to more liability with different Federal and Provincial agencies. The CRA and IRS

are cracking down on workers who are classified as independent contractors--more scrutiny is placed on

employers to prove the validity of this employment status. Therefore, when an employee changes status, it could

trigger an audit (a few of which we’ve gone through already). Given this, our objective is to limit and mitigate

any “red flags” that may be raised against TEEMA by the CRA/IRS.

TEAM MEMBERS INVOLVED

● Talent Managers, Client Managers

● Back Office – Contracts, Timesheets, Consultant Onboarding, Placements

DETAILS

When consultants inquire about changing their employment type, TEEMA will need to inform them that a status

change can only take place in one of three scenarios:

1. At time of a contract extension where a change in role or responsibility triggers an increase in bill

rate.

2. A new PO and/or hiring manager

3. At time of a net new placement (due to a new SOW or new role).

NOTE:

● Any employment type change request must be accompanied by a documented reason from the

consultant as to why they are requesting the change.

● If a consultant is thinking about engaging as an independent contractor (INC/LLC/Sole Prop), then it

should be initiated before the start of the contract, as it won’t be approved mid-contract. If we are

notified in time, we can draft temporary paperwork and ensure payment is not issued to them until

their entity is fully set up.

MEMBER ACTION STEPS AT TIME OF PLACEMENT

1. CM/TM to reach out to our Contracts and Placements team to inform of the consultant’s request to

change their employment type. Included in the request should be:

a. a written confirmation from the Consultant that they are making this request, and

b. the reasoning behind the request (Either of the 3 scenarios mentioned above should be

met).

2. If the request is approved, CM will:

a. Enter a new placement in the ATS showing the new job title and new employment type,

b. Add a note of the employment type change request in the placement “Comments” section

of the placement card.

c. Mark the placement as a PPC (Previously Placed Consultant).