In December 2022, employees of the Chattanooga accounting firm Croft & Frost were told about an unusual arrangement.
Given cash flow issues and other factors, payroll had been delayed, and they would receive their paychecks that month as gross pay — the way independent contractors or freelancers are typically compensated.
Also, the money would come from a company called Rhino Onward International.
An employment law expert told the Chattanooga Times Free Press the arrangement sounded “bizarre” and that it could draw scrutiny from tax authorities because pay and withholding for employees and contractors is handled very differently.