Construction • IN
Pre-payroll checks flagged
A contractor was paid by check before onboarding; the auditor counted it as wages. Classifi would have flagged pre-payroll disbursements and pushed a W-9 + proof capture.
Audit Shield
Audit Shield for Small Business
Classifi centralizes contractor compliance—UI audits, worker classification, receipts, and W-9s—in one secure, intelligence-powered workspace. Stay audit-ready without the scramble.
- Built on SOC 2-certified cloud
- Data encrypted
- Auditor-backed workflows
Why states run UI audits—often at random
State unemployment insurance (UI) agencies audit employers every year. Many selections are random, and others are triggered by data mismatches or worker claims. Typical focus areas:
Worker classification
Does the worker really meet your state’s independent-contractor test (e.g., ABC test factors)?
UI wage exposure
Payments made off-payroll (checks, transfers, cash) that could be reclassified as wages.
Proofs & documents
W-9 status, insurance coverage (COI), business presence proofs (site/listing), and valid agreements.
Real audit stories (names changed)
Design • CA
ABC test risk
Designer failed B-factor (same usual course of business). With Classifi, the risk indicator would have warned early and provided mitigation guidance.
Software • TX
COI gaps
Two 1099s lacked active COIs at audit time. Our expiry tracking would have reminded both parties and recorded the updated certificates automatically.
A note from the founder
“I’ve sat with business owners during surprise state audits. The scramble is always the same: digging up receipts, proving contractor status, and explaining off-payroll payments. We built Classifi so you can be ready on any day—without extra headcount. Compliance should feel like a checklist, not a fire drill.”
T
Founder, Classifi
Audit readiness for small business
Be ready when the state asks.
Classifi keeps your contractor docs and proofs organized—so audits don’t slow you down.
Classifi provides compliance tooling and document organization. We do not provide legal or tax advice.