Instantly classify remote workers as employee or contractor to dodge legal fines.
Businesses misclassifying remote workers as contractors instead of employees face severe legal pitfalls and unexpected back taxes.
ClassifyMate uses a smart questionnaire based on IRS guidelines to analyze worker details and provide a clear classification verdict with risk scores. It generates customized compliance reports and next-step recommendations. Businesses get peace of mind without needing lawyers or HR experts.
Small to medium-sized businesses (SMBs) hiring remote workers without dedicated HR or legal teams
AI-powered scoring with real-time IRS rule updates, tailored specifically for remote SMB hires.
professional
Interactive form to input worker details and get instant employee/contractor verdict.
Visual score showing misclassification risk percentage with explanations.
Downloadable PDF report with verdict, evidence, and action items.
Save and manage multiple worker classifications in a personal dashboard.
Quick reference to key factors like behavioral/financial control.
Notify users of IRS updates affecting classifications.
CSV import for classifying multiple workers at once.
Export results directly to Sheets for team sharing.
| Column | Type | Nullable |
|---|---|---|
| id | uuid | No |
| text | No | |
| business_name | text | Yes |
| created_at | timestamp | No |
| Column | Type | Nullable |
|---|---|---|
| id | uuid | No |
| user_id | uuid | No |
| verdict | text | No |
| risk_score | int | No |
| created_at | timestamp | No |
Relationships:
| Column | Type | Nullable |
|---|---|---|
| id | uuid | No |
| classification_id | uuid | No |
| name | text | No |
| hours_per_week | int | Yes |
| payment_method | text | Yes |
Relationships:
/api/classifySubmit quiz data and get classification verdict
/api/dashboardFetch user's classifications list
/api/report/:idGenerate report PDF for classification
/api/users/meGet current user profile
No saving, watermarked reports
Up to 50 workers
Unlimited workers
| Month | Users | Conversion | MRR | ARR |
|---|---|---|---|---|
| Month 1 | 150 | 3% | $135 | $1,620 |
| Month 6 | 1,200 | 6% | $2,160 | $25,920 |
IRS-compliant tool built for SMBs hiring remotely – no lawyers needed.
Post in r/smallbusiness and r/Entrepreneur about the misclassification pain, offer free Pro trials to first responders with 5+ remote workers. DM LinkedIn HR managers at SMBs via remote work groups. Run $50 Facebook ad targeting 'hiring remote contractors'.
Full payroll integration
Overkill for just classification, expensive
Standalone, cheap focus on classification only
PEO services
No quick self-serve tool
Instant, DIY for SMBs without full PEO
Proprietary classification algorithm trained on IRS cases, improving with anonymized user data.
Remote work boom + IRS cracking down on misclassification (2023 audits up 40%).
Liability for incorrect advice
Disclaimers + 'not legal advice' + link to IRS
Low awareness of pain
Content marketing on fines stories
Success: 80% confirm misclassification worry
Success: 20% convert to paid beta
Other validated startup ideas you might find interesting
AI-powered compliance scanner that audits your emissions software code solo, without burnout.
Shared compliance templates hub for solo climatetech devs to collaborate without a team.
One-click regulatory reports for emissions software—no more solo filing drudgery.
Real-time RFP alerts for govtech founders to kickstart sales cycles in days, not months.
AI generates compliant govtech proposals in minutes to accelerate your sales pipeline.
Connect with gov insiders for warm intros, slashing your 12-month sales wait.