You have a project. You know the right person for the project. You have several
options. You can bring the person on as an employee for the designated period of
time. Of course then you are liable for all payroll taxes, work comp, and for termination
procedures and administration once the project is finished. Not to mention liability
issues with hiring and termination.
You can bring the person on as an independent contractor. BE CAREFUL. Did
you know that many companies are facing huge liability issues if the person does
not "fit" the independent contractor definition. Did you also know that just because
the person has a company and you pay them as an entity, that still may not qualify
for independent contractor status under the law. Did you also know that the government
is pouring money and manpower into beefing up it's enforcement of companies misuse
of the independent contractor status. Did you further know that if audited and found
not in compliance, your company could be liable for back payroll taxes, and overtime
wages if they apply. Did you know that in the construction industry it is actually
a crime to classify employees as independent contractors?
Bear Staffing can serve as your Payroll Services Provider. In this role, your company
will rely on
Bear Staffing to become
a single-source provider by having us become the employer of record. This makes
us responsible for, Payroll, Benefits and Workers Compensation needs. We also then
become responsible for all the administrative issues that surround the termination
of an employee once the project has finished and we may have further work for the
individual. All bear temporary associates whether recruited by Bear or for Payroll
Service are w-2 employees so there is no concern with regard to the independent
contractor regulations.
Did you also know that typical rates for payroll services run in the 25-35% mark
up range? In many cases this is less than what you can employ the person for yourself.
Because we are in the business of people starting and stopping assignments it may
be much easier for us to manage this type of arrangement and much more cost effective
as well.