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Corp-to-Corp and Subvendor Solutions

Corp-to-corp and Subvendor Solutions

“Corp-to-Corp” is a term that is generally used to describe a small supplier, usually comprised of 5 workers or less.  The owner of the small company may or may not be a worker.  Usually the workers supplied by the Corp-to-Corp are W-2 employees, but sometimes – depending on program limitations – those workers may be subcontractors. 


“Subvendor” usually means suppliers that are not in a supplier program but have resources that are needed by the client.  Instead of bringing the Subvendor into the program, that Subvendor will be onboarded by the payrolling or independent contractor compliance/agent of record provider, such as ICON, and the workers are then supplied through ICON.


Corp-to-Corp’s and Subvendor must be vetted for compliance on the entity level, i.e., the Corp-to-Corp and the Subvendor entity must be registered, in good standing, and meet other compliance criteria; the treasury function is established directly with the Corp-to-Corp or Subvendor, and not directly with the workers (the Corp-to-Corp and Subvendors are required to pay their workers, regardless whether they are W-2 employees or subcontractors); and then the workers themselves must be vetted for compliance or otherwise be subject to certain compliance requirements, such as execution of work product assignment provisions or, in the case of a subcontractor, vetted for compliance with applicable independent contractor compliance laws.


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ICON has deep experience handling all of the needs, complexities, treasury details, and compliance aspects of both Corp-to-Corp and Subvendor relationships.  ICON operates both inside and outside of formal supplier programs and can scale to handle any volume level. ICON stands as the single point of contact, handles consolidated billing, and administratively eases the burden for its clients across the board and to a substantial degree, all the while assuming the compliance risk.


For more information on C2C or Subvendor solutions, contact us today!


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