With Deel Premium now available everywhere from Alaska, USA to New Zealand, clients can get protection against misclassification at a small fee of 50$ in addition to the standard 49$ a month/contract fee. By upgrading you're covered for legal costs and penalties when tax authorities think that an employee has been hired as a contractor.

Why get Deel Premium for misclassification protection?

When working with independent contractors, they may be misclassified as employees by international tax organizations, and companies that hire these contractors may be subject to penalties for misclassification.

Employers normally pay taxes and other national insurance contributions for full-time employees, but these fees may not apply to independent contractors, who may not be eligible for unemployment benefits or medical leave, for example. You can read more about this topic over our excellent article: Misclassification of Independent Contractors Guide.

In case that misclassification is found the United States may issue fines of up to $10,000 or less for fraud if they believe this was unintentional. With Deel Premium, you'll be protected for the following up to a limit of $25k per contract and $250k per client.

With Deel Premium you'll be covered for:

  • Legal Costs.

  • Tax Authorities Penalties.

  • 3rd Party Indemnity (up to $10,000).
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How do I apply the Deel Premium feature?

During the process of generating a standard contract for an Independent Contractor outside the US or Canada, our Clients who have legal entities in those countries, will have this feature automatically applied. Before creating the standard contract, the feature will be displayed on screen and you can choose if you'd like to include it.

If you decided to enroll for Deel Premium, you will be asked to complete a brief eligibility check. This will help us understand the relationship between you as the Client and your Independent Contractor, as well as the nature of the Contractor's Scope of Work.

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