When to Use This
You want to establish best practices for data management
You're preparing for year-end tax reporting
You want to reduce the number of alerts in your Alert Center
You need to ensure all reps have complete profiles
You want to create processes that prevent compliance issues
Why Compliance Matters
Keeping your Sequifi data clean and complete has several important benefits:
Payroll accuracy Complete banking and tax information ensures reps get paid correctly and on time.
Tax reporting Accurate tax information is required for 1099 preparation at year end.
Legal protection Signed documents like rep agreements protect both the company and the rep.
Operational efficiency Clean data means fewer errors, fewer disputes, and less time spent fixing problems.
Better reporting Accurate data leads to accurate reports, which helps with business decisions.
Key Compliance Areas
Tax Information
Every rep needs complete tax information on file.
For individuals:
Social Security Number (SSN)
Current legal name
Current address
For business entities:
Business name
Business type (LLC, Corporation, etc.)
Employer Identification Number (EIN)
Business address
Best practices:
Require tax info completion during onboarding
Verify information is entered correctly (SSNs should be 9 digits, EINs should be 9 digits)
Update information if a rep forms a business entity mid-year
Keep records of any mid-year changes for tax reporting
Banking Information
Every rep needs complete banking information to receive pay.
Required information:
Bank name
Routing number (9 digits)
Account number
Account type (checking or savings)
Best practices:
Require banking setup before first pay period
Encourage reps to double-check their numbers
Follow up immediately with anyone missing banking info
When reps change banks, remind them to update Sequifi
Signed Documents
Reps should have all required documents signed and on file.
Common required documents:
Rep agreement or contractor agreement
W-9 tax form
Background check authorization
Non-compete or non-solicitation agreements (if applicable)
Any addendums or special agreements
Best practices:
Make document signing mandatory during onboarding
Don't allow work to begin until all documents are signed
Keep electronic copies of all signed documents
Have reps re-sign annually if your company does yearly renewals
Profile Completeness
Complete profiles ensure you have all necessary information about each rep.
Important profile fields:
Full legal name
Current address
Phone number
Email address
Emergency contact information
Position and department
Manager assignment
Office assignment
Best practices:
Review profiles periodically for outdated information
Ask reps to verify their information annually
Update records when reps move, change phone numbers, or have other life changes
Creating a Compliance Routine
Establish regular habits to maintain data quality.
Daily Habits
Check the Alert Center. Look for new alerts that need attention.
Follow up on pending items. If you contacted someone yesterday about missing info, check if they completed it.
Weekly Habits
Review onboarding status. Check that new hires are completing their onboarding promptly.
Address outstanding alerts. Work through any alerts that have been open for more than a few days.
Verify new accounts. Spot-check recently added sales for complete information.
Monthly Habits
Run a profile completeness check. Review the user list for anyone with incomplete information.
Review pending documents. Check for any unsigned documents that have been waiting too long.
Audit a sample of records. Pick a few random reps and verify their information is accurate and current.
Quarterly Habits
Review compliance metrics. How many alerts did you have this quarter? Is the number going up or down?
Update processes. If you see recurring issues, adjust your onboarding or data entry processes.
Communicate with managers. Share compliance status and ask for help addressing issues in their teams.
Annual Habits
Prepare for 1099 reporting. Verify all tax information before year end.
Update addresses. Ask reps to confirm their mailing addresses for tax documents.
Review and renew agreements. If your company does annual renewals, manage that process.
Archive departed reps. Ensure records for former reps are complete for historical purposes.
Preparing for Year-End Tax Reporting
1099 forms must be sent to contractors by January 31. Start preparing well in advance.
In October or November:
Run a tax information audit. Identify any reps with missing SSNs or EINs.
Contact reps with missing info. Give them a deadline to complete their tax information.
Verify addresses. 1099s are mailed to the address on file. Ensure addresses are current.
Review mid-year changes. If anyone changed from individual to business (or vice versa), note this for proper reporting.
In December:
Final push on missing information. Follow up urgently with anyone still missing tax details.
Lock down changes. Minimize address or tax info changes close to year end.
Prepare your 1099 process. Work with your accounting team or service on how 1099s will be generated.
In January:
Generate 1099s. Produce the forms with year-end earnings data.
Review for accuracy. Spot-check several 1099s to ensure information is correct.
Distribute by January 31. Mail or provide electronic access to all 1099s.
Handling Common Compliance Issues
Rep Won't Complete Their Information
Send multiple reminders. Email and call if necessary.
Set a firm deadline. Make it clear when information must be completed.
Escalate to their manager. Ask the manager to follow up directly.
Explain consequences. They may not receive pay until information is complete.
Consider holding payroll. As a last resort, you may need to stop payroll until compliance is achieved.
Information is Entered Incorrectly
Identify the error. Determine what's wrong (typo, wrong account number, etc.).
Contact the rep. Ask them to log in and correct the information.
Verify the correction. Check that the updated information is accurate.
Note for future reference. If the error caused issues (like a failed payment), document what happened.
Documents Expire or Need Renewal
Track expiration dates. Know when agreements end and renewals are needed.
Start renewal process early. Begin reaching out to reps 30-60 days before expiration.
Use the resign process. Create new contracts for existing reps without full re-onboarding.
Follow up on unsigned renewals. Don't let agreements lapse due to inaction.
Tips and Common Mistakes
Prevention is easier than correction. Strong onboarding processes prevent most compliance issues.
Don't wait until year end. Address tax information issues throughout the year, not just in December.
Make compliance everyone's job. Managers should help ensure their team members have complete profiles.
Document your processes. Write down your compliance routines so anyone can follow them.
Use the Alert Center proactively. Don't just react to alerts. Check regularly and address issues promptly.
Communicate clearly with reps. Explain why information is needed and what happens if it's not provided.
Keep records of follow-ups. Document when you contacted reps about missing information in case questions arise later.
Plan for turnover. When reps leave, ensure their records are complete for historical reporting.
Common Questions
What if a rep refuses to provide their SSN? Explain that it's required for legal tax reporting. If they still refuse, consult with HR or legal. You may not be able to pay them without proper tax information.
How do I know if all my reps are compliant? Check the Alert Center for missing information alerts. You can also review user lists and filter for incomplete profiles.
What happens if I send a 1099 with wrong information? You may need to issue a corrected 1099. Work with your accounting team to handle corrections properly.
Can reps opt out of direct deposit? This depends on your company policy. Most companies require direct deposit, but some may allow checks. Check your policies.
How long should I keep records for former reps? Tax records should typically be kept for at least 7 years. Consult with your legal or accounting team for specific guidance.
What to Do Next
Now that you understand compliance best practices, explore these related topics:
Understanding the Alert Center – Monitor compliance issues
Common Alerts & How to Fix Them – Resolve specific alert types
Managing Your Team – Oversee your reps effectively
Editing Your Profile – Understand what information reps can update
If you have questions about compliance or need help with specific issues, reach out to your admin or our support team and we'll be happy to assist!