Worksome Classify

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Effective May 4, 2023

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Overview

Worksome Classify assists Users in providing a worker classification recommendation based upon the information provided by the Company and each Worker for an Assignment. The details of the Worksome Classify tools are outlined below. Except as otherwise stated here, no warranty of any kind, implied, expressed, or statutory, including but not limited to warranties of non-infringement of third-party rights, title, merchantability, or fitness for a particular purpose is given with respect to Worksome Classify tools.

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Worksome Classify

We provide three Worksome Classify tools - depending on the location of the worker: 

• United Kingdom Status Determination Statement
• United States of America Worker Classification Recommendation
• Global Worker Classification Recommendation (excluding US and UK)

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United Kingdom

In the United Kingdom, Worksome Classify can be used to determine the employment status of Workers operating through their PSC or those wishing to engage as sole traders. Where IR35 is concerned, it will create and issue a Status Determination Statement with either inside or outside IR35 status. For sole traders, it will determine whether they should be taxed at source (PAYE) or can receive gross payments and manage their own tax affairs.

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United States

In the United States, Worksome Classify can be used to classify a Worker as an employee (W-2) or independent contractor (1099) at both the state and federal level. 

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Global (excluding UK and US)

For countries outside of the United States and the United Kingdom, Worksome Classify provides a recommendation to classify a Worker as an employee or independent contractor. 

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Indemnification

Worksome will indemnify the Company against any and all actual, direct and final losses, final judgments or arbitration in the form of taxes, tax penalties, and interest on taxes, excluding professional or attorneys’ fees, that are incurred by Company in a final non-appealable judgment, assessment, or award arising from a government or taxing authority exercising proper jurisdiction over a relevant Assignment and the parties to the Assignment (“Damages”).

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In the event the Company, or any authorized user of the Company overrides the Worksome Classify classification determination or recommendation, Worksome will have no indemnity obligation whatsoever and Company shall indemnify, defend, and hold Worksome and Worksome’s affiliates harmless against all claims, actions, proceedings, losses, damages, expenses and costs arising from the misclassification of the applicable Worker.

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Limitation of Liability

Worksome’s indemnification obligations for the misclassification of any Worker is limited to circumstances where Worksome Classify was properly used for the classification of the relevant Assignment, where the Assignment is contracted, invoiced, paid, and serviced entirely on the Worksome Platform, and for which the Company and the Worker provided true, accurate and complete information about the job, and for which no material deviation exists between the work performed by the Worker in respect to the classification answers provided in the Worksome Classify tool. 

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For Companies using the Worksome Classify tools, Worksome’s maximum liability for Damages will be determined as follows: 

Worksome’s liability to the Company for Damages shall be limited to a maximum aggregate amount of:

• $100,000.00 per Worker Booking for a Worker based in the United States of America;
• £200,000.00 per Worker Booking for a Worker based in the United Kingdom; and
• $25,000.00 per Worker Booking for a Worker based elsewhere in the world.

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FOR PURPOSES OF THIS SECTION AND IN ADDITION TO THE LIMITS ABOVE, WORKSOME WILL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, OR ECONOMIC DAMAGES OR FOR LOSS OR DAMAGES TO ANY PERSON OR PROPERTY RELATING TO OR ARISING FROM ANY INACCURACY OR BREACH OF ANY OF THE REPRESENTATIONS OR WARRANTIES OF THE COMPANY CONTAINED IN THE WORKSOME CLASSIFY QUESTIONNAIRE OR WHILE USING THE WORKSOME CLASSIFY TOOL. THE COMPANY AGREES TO PRODUCE OR MAKE AVAILABLE AT SUCH REASONABLE TIMES, AS DESIGNATED BY WORKSOME, SUFFICIENT EVIDENCE OF LOSS, COST, DAMAGE OR INFORMATION TO PROVE ANY INDEMNIFIED CLAIM BY THE COMPANY FROM WORKSOME.

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