Customers require third-party payment for their contingent pilots and flight attendants for a variety of reasons. 

Here's Why:

Customers want to know they and their workers are in compliance with the IRS, the Department of Labor (DOL), and the Fair Labor Standards Act (FLSA) to track and pay overtime.  They want to avoid treating employees as non-employees by misclassifying workers as independent contractors.  Customers don’t want to be exposed to fines, penalties, and back withholding taxes, Social Security and Medicare, for not deducting and withholding because they treat an employee as a non-employee.  

Customers want to ensure company insurance requirements are met.  Typically individuals in the corporate aviation industry who refer to themselves as “Independent Contractors” do not carry business insurance. 

Customers want to be assured their contingent workers are covered by Workers Compensation to avoid law suits, defense costs, and settlements brought by individuals or their estates for on-the-job injury or death. 

Customers want to know there is appropriate insurance in force for the services being performed by contingent workers.  (Commercial General Liability excludes aviation exposures.)  The insurance that will respond to an aviation exposure is an aviation policy.  This insurance is prohibitively expensive, making it unfeasible for individuals to purchase, but practical for a business to purchase when covering multiple employees.  Consider it priceless!

Customers may have additional important insurance requirements that are met when utilizing the services of a well-established, reliable 3^rd-party payer such as Corporate Aviators, Inc.

Customers don’t want to increase their employee “head count” for contingent workers, or can’t due to a hiring freeze.  Customers find it impractical, costly, time consuming and burdensome to increase their employee head count when utilizing the services of a myriad of contingent flight crewmembers to fill part-time, temporary, or long-term contract assignments.

Customers find utilizing contingent pilot and flight attendant services more attractive when using the well- established, reliable 3^rd-party payer Corporate Aviators, Inc.  Customers have security, and peace of mind knowing they are in compliance and their contingent workers come to them properly insured.  

Back to Top

The information provided on this page is for informational purposes and is not intended as legal or accounting advice and should not be used as a substitution for consultation with professional legal or accounting advisors.  We have made every attempt to ensure that the information contained herein has been obtained from reliable sources.