PPB March 2019

employees for several reasons including: • to fill a short-term need (i.e., sudden or occasional increased client demands) • to assist regular employees who are under work stress • to complete a specific project (i.e., to scan hard-copy records into electronic storage) • to “try out” a person before hiring full time • to meet seasonal demands (i.e., salespeople just for the Christmas shopping season) • to cover a regular employee who is out on extended leave (i.e., medical or maternity leave) • to reduce employment commitments in an uncertain economy • to avoid the costs associated with regular employees (i.e., benefits, insurance) According to a report by the American Staffing Association, three million temporary/ contract employees are placed by staffing companies each week and more than 15 million temporary/contract employees are hired by staffing companies each year. Workers may choose temp work to give them flexibility, as a stepping stone to find a permanent position or out of necessity. Employers who hire temps should be alert to two issues: 1 Do not keep a temp for too long. Retaining a temp for a long time with no intention to terminate their services or bring them on as a regular employee may be seen as avoiding mandated employment obligations. While extending a temp beyond the initial project deadline is fine, do not infinitely employ a temp without converting to regular employment at some point. If they are good, hire them so they won’t leave to temp for someone else who can provide them stability. 2 Do not blindly trust the staffing agency you use. Implement practices such as doing reference checks on a new staffing agency and viewing all paystubs the agency issues to your temps to make sure everything is handled correctly. If the agency is not processing payroll correctly, you could be found liable for back wages and taxes. Independent Contractors Companies may choose to hire independent contractors for several of the same reasons they would a temp: staffing flexibility, reduced employment costs or to meet a temporary need. Independent contractors can also fill a specific, more regular role that the company may not need full time, such as marketing, IT support, HR or bookkeeping. The CPA Practice Advisor explains that small businesses hire independent contractors more often than regular employees. Since small companies must be more streamlined in their operations and are more impacted by client demand and budget fluctuations, independent contractors give them a way to fill part-time or occasional workforce needs without the expense of hiring a regular employee. Many people are choosing to leave the regular workforce and work for themselves as an According to a report by the American Staffing Association, threemillion temporary/ contract employees are placed by staffing companies each week andmore than 15million temporary/ contract employees are hired by staffing companies each year. | MARCH 2019 | 87 THINK