Hiring the wrong person or misclassifying a worker can have serious and costly consequences for businesses, whether in the UK or the US. In the UK, getting contractor status wrong under IR35 remains a key risk. Misclassification can result in unexpected tax liabilities, fines, and even reputational damage. With employment law constantly evolving, a single incorrect decision can disrupt operations, drain resources, and create uncertainty across teams. Businesses need to ensure they fully understand IR35 rules and the nuances of contractor versus employee status before making hiring decisions.
In the United States, the risks are equally significant but manifest differently. Misalignment with the Fair Labour Standards Act (FLSA), misjudging tax residency, or hiring staff without the necessary CPA or licensing credentials can all trigger serious consequences. Companies may face financial penalties, back payments, and legal disputes, all of which can destabilise operations and hinder growth. Even well-intentioned hiring decisions can become costly if compliance requirements are overlooked, making expert guidance essential.
Sheridan Maine is highly experienced in helping organisations navigate these complex employment and tax regulations. With expertise spanning both UK and US compliance frameworks, the firm advises on contractor classification, employment law, and licensing requirements, ensuring hiring decisions are both legally sound and strategically aligned. By working with Sheridan Maine, businesses can minimise risk, avoid penalties, and maintain smooth, efficient operations, confident that their workforce decisions are built on solid foundations.
Practical Tips to Reduce Hiring Risk
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Review Worker Status Carefully – Confirm whether individuals are contractors or employees according to local rules (IR35 in the UK; FLSA and tax residency in the US).
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Check Qualifications and Licences – Ensure any required professional credentials, CPAs, or licences are valid and up to date.
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Document Decisions – Maintain clear records of hiring decisions, contracts, and compliance checks.
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Seek Expert Guidance Early – Consulting with specialists like Sheridan Maine can prevent costly mistakes and provide peace of mind.
Following these steps can help businesses make informed, compliant, and confident hiring decisions while minimising the risk of operational disruption or legal exposure.
