Contract-to-hire

An AI startup needed an Accountant to manage financial tasks such as R&D expense tracking, grant accounting, financial reporting, and cash flow management. However, due to the company's early-stage nature, they were hesitant to commit to a permanent full-time hire. The leadership wanted to reduce the hiring risk by initially bringing the Accountant on a contract basis.

At the same time, the startup was concerned about contract compliance risks, such as contractor classification, tax reporting, employment status, and compliance with state and federal regulations.

We provided the AI startup with a contract-to-hire option, enabling them to bring the Accountant on board as a contractor initially, while ensuring full compliance with labor laws and regulations.

We handled the contractor agreement, ensuring that the contract clearly outlined the Accountant’s responsibilities, compensation, and terms for potential full-time conversion. We also provided guidance on IRS 1099 reporting and ensured compliance with state-specific contractor regulations to mitigate any legal risks associated with misclassification. 

Our approach gave the company the option to convert the contractor to full-time based on performance, without the initial risk of a permanent commitment. 

The AI startup successfully onboarded the Accountant under a contract-to-hire arrangement, with full confidence in their compliance with labor laws and contractor classification. After a contract period of 12 months, they had the flexibility to evaluate the Accountant’s fit for the company and make an informed decision to transition the role into full-time employment.