Temporary Staffing Compliance

Temporary Staffing Compliance What You Don’t Know Can Hurt You

What’s better then finding the right temporary worker for
your new project? There you are with a great fit, excellent skills, someone who
comes in on time and takes direction well.
All you do is cut them a check no social security payments, no health
insurance, no taxes, minimal fees.
Everything works so perfectly you wind up keeping that temporary staffer
for years.

What’s wrong with this picture? A lot, according to the IRS. There was a time when you could just have
someone come in and do some work for you, but no longer. The U.S. government is
looking for hidden money. One of the ways they have done this in the past was
asking people who worked for tips to claim that money in order to be taxed. Now
they are looking for funds in places like temporary employment.

So the argument has become, are the people that work for you
contractors by pure definition? Or are they virtual employees? If the
definition fits that of the virtual employee, the IRS could be asking you for
back taxes and you could owe the worker some back benefits.

The areas for debate are pretty gray. But the contrast has
been turned up a bit lately. In the above case, there were three things that
could come into question. First, your worker comes in on time. You cannot ask a
contractor or freelance worker when to come in to work. They must be their own
company, and therefore, make their own hours.

Second, your worker takes direction well. This one is a
little tricky in that if you are the