“Your “contractor” has worked your hours, on your laptop, for two years. Diligence starts Monday.”
Catch the risk before a regulator does.
The agreement says contractor. The working reality may say employee. We assess the exposure honestly and convert the person compliantly, without losing them.
How do you fix contractor misclassification?
Assess each engagement against the tests local authorities actually apply, then convert misclassified contractors into compliant employees through an Employer of Record, with role, pay and seniority carried over. LanceSoft converts in 100+ countries on our own entities in 60, usually onboarding within 3 working days of offer acceptance, with zero conversion fees.
Nobody sets out to misclassify. It happens by drift: a specialist joins for a three-month project and the project never ends, a freelancer starts attending your standups, a remote hire gets papered as a contractor because it was the only fast option. Each decision felt reasonable. The accumulated picture is a workforce of de facto employees, and an employer carrying all of the liability.
Regulators noticed the remote-work era. Tax authorities across North America, Europe and APAC have expanded enforcement, introduced new statutory tests, and in several jurisdictions shifted the burden of proof onto the company. The question is no longer whether your contractor arrangements will be examined, but whether they will hold up when they are.
The difference, side by side.
Without a partner
- Exposure compounding monthly: back taxes, benefits, fines
- Risk surfacing mid-funding round, audit or acquisition
- A DIY conversion that risks losing the person
- No defensible classification test applied per country
With LanceSoft
- A confidential assessment against the tests authorities use
- Converted onto our local entity within days
- Role, pay and seniority carried over; the person stays
- Genuine contractors kept compliant under AOR
Statutory exposure check
Not sure where your compliance gaps are?
A 30-minute call with a Regional SPOC maps your exposure country by country: classification, filings, benefits and remittances. No deck, no pitch.
Your path from here
A confidential review of how each engagement really works
Exposure ranked by country, tenure and role
A compliant local offer the person is glad to sign
Genuine contractors stay compliant under AOR
Does this sound like you?
- A contractor works set hours, on your tools, only for you
- An engagement keeps renewing with no defined end date
- A funding round, audit or acquisition is on the horizon
- A contractor sits inside your org chart with a manager
Zero onboarding fees · exit with statutory notice only · terms in writing before you commit
Ignore it, fix it yourself, or convert via EOR
Exposure compounds every month
Back taxes, benefits, fines and interest accrue
Surfaces at funding, audit or acquisition
Best for nobody, and worst timed
Works where you have an entity
Requires local payroll, benefits and counsel
Slow in countries where you have nothing
Best where you already operate at scale
Compliant employment in days, anywhere
Role, pay and seniority carried over
The person stays; the risk ends
Best wherever you have no local entity
Why LanceSoft
- Assessment before any pitchAn honest read of exposure, even where the answer is you are fine.
- Conversion without losing peopleOffers designed so the person is glad to sign.
- Both models under one roofEOR for employees, AOR for genuine contractors.
- On our own paper60 own-entity countries; disclosed partners beyond.
- Zero conversion economicsNo setup, onboarding or exit fees, EOR from $299 per month.
60 own entities · 100+ countries
Where do you need people next?
Own entities in 60 countries, a disclosed partner network in 50+ more. Check the map before you plan the quarter.
Quick answers
How do I know if a contractor is misclassified?
Authorities look at how the relationship works, not what the agreement says. Set hours, your equipment, no other clients, no end date and a place in your org chart are the strongest indicators in almost every jurisdiction.
Can a misclassified contractor be converted without losing them?
Yes. LanceSoft converts the contractor to a compliant employee on our local entity, with role, pay and seniority carried over, usually onboarded within 3 working days of offer acceptance.
What is the risk of doing nothing?
Exposure compounds monthly: back taxes, retroactive statutory benefits, fines and interest. It usually surfaces at the worst moment, during a funding round, acquisition, audit or dispute.
Which contractors should be assessed first?
Longest tenure, most integrated and highest-exposure countries first. Exclusivity plus set hours plus no end date is the combination that fails statutory tests most often.
Will converted contractors cost more than before?
Total cost typically rises because statutory contributions and benefits are real, but it replaces an unquantified liability with a predictable, transparent monthly cost from $299 per employee.
What about contractors who are genuinely independent?
They stay contractors. LanceSoft’s Agent of Record engages them compliantly from $99 per contractor per month, with classification assessed and documented per engagement.
Tell us the role. Humans handle the rest.
A dedicated team member replies within one business day with answers and a custom quote.