Sourcing for Services Launches Independent Contractor Compliance Advisory Division SFS Compliance Solutions

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Sourcing for Services, LLC (SFS) announced today the launch of sister company SFS Compliance Solutions, LLC. The new branch of SFS is designed to mitigate client risk in cases of independent contractor misclassification, and provide clients with conflict-free and risk-protected access to freelance talent

employment law, IC compliance, compliance technology

SFS Compliance Solutions

We recognize the value of managing IC compliance within the broader operational and risk management construct of the contingent labor governance model.

Sourcing for Services announces the launch of sister company SFS Compliance Solutions, LLC, in response to the increasingly complex legal risk environment of employee classifications, and the continued demand from customers and partners for conflict-free independent and objective contractor compliance and risk management services.

Independent contractors, frequently referred to as IC’s or freelancers, represent a growing part of contingent workforces that companies increasingly rely upon to meet production goals.

According to an article in the U.S. Labor Department’s Monthly Labor Review titled “Freelancers in the U.S. Workforce,” approximately one in every three workers are ICs, and that ratio is expected to rise to almost 50 percent in coming years. However, companies that engage ICs are exposed to heightened risk when it comes to regulatory compliance regarding the legal classification of non-employee workers.

Federal and state regulating agencies require strict legal criteria be met and supporting documentation maintained in order to avoid government claims of independent contractor misclassification. IC misclassification can cost a company between 10 – 80 percent of an ICs annual pay in back payroll taxes, benefits and penalties.

The SFS Compliance Solutions team has amassed expertise in employment law, intelligence based IC compliance technology, and IC program management best practices that together deliver right channel access to all external resources, monitoring procedures across all risk entry points into the organization and integrated channel management that optimizes talent engagement cycle times, ensuring proper trade-offs between risk, value and costs.

SFS Compliance Solutions is being positioned as an extension of the statement of work (SOW) service delivery model that Sourcing for Services has successfully developed and implemented over the last 18 months within the contingent labor programs at multiple Fortune 1000 companies.

“Because we are already woven into the fabric of the program services model with our support of SOW, we are in an ideal position to take on the management of independent contractor risk and access for our clients,” says SFS co-founder and CEO, Ken Hernandez.

SFS COO and co-founder Michael Matherly adds that since SFS is not in the recruiting, staffing or employer of record business, like most other IC compliance shops, the company can provide its clients with an independent and objective IC management solution without adding an external vendor to manage or monitor a potential conflict.

“We recognize the value of managing IC compliance within the broader operational and risk management construct of the contingent labor governance model,” Matherly says. “We launched SFS Compliance Solutions in part because we are experiencing an increasing number of clients who question the conflicted business objectives of so-called ‘total IC or program solution’ providers.”

To learn more about SFS Compliance Solutions products and services, visit, email Michael Matherly at michael(at)SFSCompliance(dot)com, or call +1 (864) 321-0729

About Sourcing For Services, LLC.
Sourcing For Services, LLC (SFS) is a strategic sourcing advisory firm and an outsource provider of procurement services. Established in 2014, SFS developed the “Spend Management Platform™” approach to statement of work (SOW)-based spend management for mid- to large-size companies seeking to establish, scale or mature its procurement program capabilities. SFS markets the stand-alone solution exclusively as a private label offering to its staffing managed service provider (MSP) and vendor management system (VMS) partners in the contingent labor industry. The Spend Management Platform™ product, along with SFS’s unique brand of procurement consultancy, is also marketed directly to clients. SFS is currently serving multiple Fortune 500 companies, directly and through its strategic MSP partnerships.

About SFS Compliance Solutions, LLC.
SFS Compliance Solutions, LLC is an independent solution provider for the management of independent contractors and freelancers, including classification testing, audit proof file documentation, and risk-protected access to the talent that our client organizations need. Founded and run by industry veterans, SFS Compliance Solutions is a complementary expansion of sister company Sourcing for Services’s statement of work management practice. Their existing presence in the contingent labor programs of Fortune 500 & 1000 clients, and the fact that SFS Compliance Solutions is not in the recruiting or staffing agency business, makes the bundled IC compliance and SOW management solution the SFS family offers a compelling and conflict-free alternative to traditional models.


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Michael Matherly

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since: 09/2009
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