Worksome provides a guided classification workflow based on IRS and Department of Labor guidelines, helping you stay compliant and reduce misclassification risk.
Who is this for?
This feature is available to all clients hiring in the United States. It’s particularly helpful for teams that:
Need to meet IRS and DOL classification requirements
Want to avoid costly misclassification penalties
Require documentation for audit or legal purposes
What you can do
From the Hire page, you can:
Select the engagement type (1099 or W-2)
Complete a classification questionnaire
Generate and approve a Worker Classification Recommendation (WCR)
Finalize and send the contract
Using Worksome Classify also gives you access to indemnity protection, as long as the engagement matches the recommended classification.
Select the engagement type
After creating a Hire, go to the Hire page and click Select under “Engagement type.”
Choose Worksome Classify to begin the classification process. You’ll also see an option for Direct W-2, which allows you to classify the worker as an employee without running the classification flow.
Note: Indemnity is only available when using Worksome Classify.
Complete the classification questionnaire
Click Edit in the Classification tab. You’ll answer questions about:
Job responsibilities and supervision
Exclusivity and control
Use of company tools or equipment
Prior employment or training
Worker’s business setup
Some answers may be pre-filled based on your company settings or the worker’s profile. You can update any fields as needed.
Review and approve the WCR
Once complete, click Create WCR to generate your classification result. You’ll receive a recommendation: either 1099 independent contractor or W-2 employee.
Review the outcome and check the box to confirm:
“I have reviewed and approved this classification.”
Then click Approve Classification. You can download the WCR as a PDF for your records.
Finalize the offer
After approval, the classification appears in the Contract Summary. Click Continue to proceed with finalizing the contract and sending the offer to your worker.
Optional: Override the result
If your team disagrees with a W-2 recommendation, Admins can click Override.
You’ll need to justify, sign an acknowledgment, and confirm that misclassification indemnity will not apply to this engagement.
Things to know
Changes can be made before the offer is accepted. You can redo the classification if needed. Indemnity is only available when you follow the recommendation exactly and use Worksome Classify. Direct W-2 and overridden classifications are not covered.
Need help?
If you have questions about classification in the US, contact your Customer Success Manager or email hello@worksome.com.