The Stakes: A small, multi-state satellite installation company opened their mail to find a nightmare: a $499,916 audit bill. The auditor had reclassified their network of independent installers as full-time employees. For a company of their size, this bill wasn’t just expensive—it was an extinction-level event.
The Investigation: Auditors often have to make quick judgment calls based on limited information. In this case, the auditor applied a broad “standard” rule to a complex contractor model. The Advisor stepped in not to fight, but to clarify.
The Breakthrough: By presenting the specific contracts, tax filings, and operational protocols that proved the installers were truly independent, the Advisor helped the carrier see the full picture that the initial audit missed.
The Result: The carrier agreed with the evidence and reversed the charges. The $499,916 bill was vacated entirely, and the premium returned to its original $13,530.