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If they work continuously, are they considered “employees”?
Legal compliance, auditability, and data security—all critically important Outsourcing providers must offer more than operations—they must deliver full compliance solutions. For these firms, compliance, security, and data privacy have become the “payroll trinity.” These companies are the skyscrapers of the simulation—tall, visible, and heavily regulated. Yellow Class: The Freelance Economy, Informal Work Risks, and Hybrid Payroll Models The yellow class symbolizes flexibility, ambiguity, and transitional work models— those navigating the blurry space between independence and employment. Freelancers, independent consultants, project-based workers… For large companies, this group is both attractive and complex. It raises immediate questions like:
reflects startups and entrepreneurial ventures that rewrite the rules on compensation. Startups and innovative ventures often go beyond traditional payroll systems. In this class, the focus is more on: Employee stock option plans (ESOPs) Profit sharing Performance bonuses Although these elements fall outside standard salary structures, they still require integration with payroll systems for taxation and compliance purposes. Outsourcing providers can create value here by offering flexible, tech- driven, internationally compatible solutions. These players are like innovation hubs in the city simulation—dynamic, experimental, and frequently challenging the rules of the game. Green Class: Social Contributors and Alternative Payroll Models
Who is responsible for their social security? Some companies are experimenting with semi- payrolled hybrid models to handle this ambiguity. However, in Türkiye, SGK (Social Security Institution) regulations struggle to accommodate such flexibility. Once freelancers come obligations can arise. So for the yellow class, payroll is not just operational— it’s a legal balancing act. They are like the pop- up settlements in your simulation—growing fast, barely regulated, and hard to fit into zoning laws. Red Class: Stock Options, Profit Shares, and Non-Payroll Incentives Red signals energy, disruption, and innovation. This class under SGK scrutiny, lawsuits for service recognition and retroactive premium
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GLOBAL PAYROLL MAGAZINE ISSUE 12
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